ARK analyst: Crypto enters largest consolidation yet
ARK Invest research associate Lorenzo Valente says Hyperliquid and Pump.fun generate about 67% of crypto application revenue; adding Ethena lifts the top three to nearly 80%.
Lorenzo Valente, a research associate at ARK Invest, wrote on X that the cryptocurrency industry has entered its largest consolidation phase to date, with two protocols-perpetual futures exchange Hyperliquid and memecoin launchpad Pump.fun-accounting for roughly 67% of total crypto application revenue. Including synthetic dollar protocol Ethena raises the top three’s combined share to nearly 80%.
Valente posted the figures on Wednesday and defined application revenue as fees and trading-related income generated by projects and exchanges, not token market capitalizations.
He wrote that investors have grown more selective, making it harder for projects and exchanges without strong product-market fit to attract capital. He characterized the numbers as evidence of what he called “record-high revenue concentration” across the sector.
Valente predicted the consolidation would accelerate in the coming months, producing more mergers and acquisitions, Chapter 11 bankruptcy filings, project shutdowns and acqui-hires. He described the consolidation as “extremely bullish” for the industry.
Recent exchange actions reflect pressure in parts of the market. BitMEX announced it will close its exchange in September after a strategic review by owner HDR Global Trading and had sped up the delisting of trading pairs and derivative contracts, citing insufficient trading interest. BitMart plans to end trading services on Aug. 26 and to wind down operations entirely by January 2027 after reviewing its operating conditions and market environment.
Consolidation has also taken the form of acquisitions and regional expansion. Earlier this month Bybit acquired a majority stake in Indonesian digital asset firm NOBI and launched a locally operated exchange in Indonesia.
Valente’s figures focus on application revenue and user engagement rather than token prices. He linked the shift in revenue share to investor preference for projects with clear product-market fit, usable products and stable revenue streams.
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