Crypto▲ Bullish
Crypto entering biggest consolidation phase in history, says ARK analyst
ARK analyst says Hyperliquid and Pump.fun now make up 67% of crypto app revenue, signaling a shakeout that will bring more exchange closures and acquisitions.
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ARK Invest analyst Lorenzo Valente said the cryptocurrency industry is entering its largest consolidation phase yet, with revenue concentrated among a handful of dominant protocols.
In a Wednesday post on X, Valente, a research associate at the firm, said investors have become more selective, making it harder for projects and exchanges without strong product-market fit to attract capital. Weaker projects are shutting down, he said, and revenue is flowing to a small number of protocols.
Valente pointed to data showing that perpetual futures exchange Hyperliquid and memecoin launchpad Pump.fun together account for roughly 67% of total crypto application revenue. Adding synthetic dollar protocol Ethena pushes the top three's combined share to nearly 80%, a record high, he said.