Crypto industry consolidation: 2 projects own 67% of all app revenue, ARK warns
The crypto industry is entering a consolidation phase that goes deeper than anything seen in previous bear markets, according to ARK Invest researcher Lorenzo Valente. The warning isn’t abstract: capital is concentrating fast, weak projects are being flushed out, and the fallout — in the form of bankruptcies, shutdowns, and forced mergers — is only expected to intensify in the months ahead.
Key takeaways
- ARK Invest’s Lorenzo Valente says the current crypto industry consolidation is more severe than in any prior bear market cycle.
- Hyperliquid and PumpFun alone account for 67% of total application revenue across crypto; the top three projects including Ethena reach nearly 80%.
- Revenue concentration is high not just in applications but also across infrastructure and Layer 1 blockchains.
- Valente forecasts rising M&A deals, more bankruptcy filings, project shutdowns, and talent acquisition activity in the coming months.
Deepening Crypto Industry Consolidation
This isn’t the kind of market cleanup that follows a typical downturn. According to Valente’s analysis, the crypto industry consolidation now underway is structurally different — and more unforgiving — than what came before. Capital allocation is tightening sharply, and teams or exchanges that haven’t found product-market fit are exiting, not pivoting.
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