Crypto▼ Bearish
ARK analyst sees more crypto failures ahead as revenue narrows
ARK Invest's Lorenzo Valente expects more crypto shutdowns and M&A as Hyperliquid and Pump.fun capture 67% of app revenue. Storj files Chapter 11, BitMEX and BitMart close.
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Lorenzo Valente, ARK Invest's director of digital assets research, said July 28 that crypto is entering its deepest consolidation phase, with revenue and investment flowing toward fewer businesses.
Hyperliquid and Pump.fun account for 67% of application revenue, Valente wrote. Adding Ethena lifts the top-three share to almost 80%. He expects more mergers and acquisitions, Chapter 11 filings, shutdowns and talent-focused acquisitions in the coming months. His post did not identify the dataset, category definitions or measurement period behind those figures.
ARK's Q1 2026 DeFi report provides earlier evidence of concentration, though its figures differ from Valente's newer post. Total application revenue fell about 23% quarter-over-quarter to roughly $485 million, the report said. Hyperliquid generated about $145 million, Pump.fun produced $123 million and Axiom earned $58 million during the quarter. Those three applications accounted for roughly 67% of tracked application revenue through March 31.
The difference does not necessarily contradict Valente's July figures. He may have used a newer period or another classification.
Current public dashboards also show why methodology matters. DefiLlama records $37.46 million in 30-day protocol revenue for Hyperliquid and $20.32 million for Pump.fun. For Ethena, it records $14.41 million in fees but only about $42,365 in retained protocol revenue after costs.
Storj Labs filed voluntary Chapter 11 proceedings July 26 in the U.S. Bankruptcy Court for the Northern District of West Virginia. Storj said it plans to keep its storage network operating while addressing legacy obligations under court supervision.