Crypto Witnesses ‘Biggest Consolidation Phase’ As Investors Become Much More Selective, Says ARK Analyst

A research director at ARK Invest says crypto is in the midst of a massive market shift, with three protocols now dominating revenue generation in the space.

Three protocols now generate nearly 80% of all crypto application revenue, says ARK Invest’s Lorenzo Valente.

Perpetual futures platform Hyperliquid (HYPE) and memecoin launchpad Pump.fun (PUMP) together drive roughly 67% of that total app revenue.

The synthetic dollar protocol Ethena (ENA) joins them to push the top trio close to 80% of the market.

Valente says capital is now flowing selectively toward projects with strong product-market fit (PMF), and teams and exchanges lacking that edge face shutdowns or acquisitions.

The trend spans applications, middleware layers and layer-1 blockchains alike.

Says Valente,

“I believe crypto is going through the biggest consolidation phase in its history, far more profound than in previous bear markets.

The market structure has changed. Capital is much more selective, and teams and exchanges without real PMF are shutting down…

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