An analyst at ARK Invest says the cryptocurrency industry is undergoing its most significant consolidation phase to date, with revenue increasingly concentrated among a handful of dominant protocols while weaker projects struggle to survive.

Lorenzo Valente, a research associate at ARK Invest, outlined his assessment in a post on X on July 28, 2026.

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.

Revenue concentration… pic.twitter.com/oY6pGSPV32

— Lorenzo Valente (@LorenzoARK) July 28, 2026

Valente argued that capital has become far more discriminating, making it increasingly difficult for smaller crypto projects—particularly those lacking strong product-market fit—to secure funding. As weaker teams and exchanges shut down or falter, revenue continues to migrate toward a narrow group of leading platforms. ARK Invest, founded by Cathie Wood, has been one of the most prominent institutional advocates for digital assets, having launched spot Bitcoin and Ethereum ETFs and publishing recurring research on the sector.

Revenue Concentration Reaches Record Levels

Citing revenue data, Valente noted that Hyperliquid, a perpetual futures exchange, and Pump.fun, a memecoin launchpad, together generate approximately 67% of all crypto application revenue—meaning two platforms alone capture more than two-thirds of the entire market's revenue.

When Ethena, a synthetic dollar protocol, is included, the top three platforms' combined share climbs to nearly 80%. Valente described this as a record level of revenue concentration for the sector. The concentration spans distinct crypto sectors—perpetual derivatives, memecoin speculation, and yield-bearing stablecoin alternatives—suggesting that dominance is not confined to a single product category.

He expects the trend to persist in the coming months, likely resulting in more mergers, acquisitions, Chapter 11 bankruptcies, project shutdowns, and acqui-hires—transactions in which a company is acquired primarily to absorb its talent.

Despite the ongoing shakeout, Valente characterized the consolidation as "extremely bullish" for the crypto industry overall.

Exchange Closures and Acquisitions Accelerate

Valente's remarks coincide with a wave of exchange closures and consolidations across the industry.

Last week, BitMEX announced it will shut down its exchange operations in September. The decision followed a strategic review by its parent company, HDR Global Trading. BitMEX had already accelerated the delisting of trading pairs and derivative contracts, citing weak trading interest. At its peak in the late 2010s, BitMEX was among the largest crypto derivatives venues by volume, making its wind-down a notable milestone in the broader platform retrenchment.

Days later, BitMart issued a similar announcement. The exchange stated it would end trading services on August 26 before fully winding down operations by January 2027. BitMart attributed the decision to a review of its operating conditions, the current market environment, and its future strategic direction. Both exchanges framed their closures as deliberate business decisions rather than emergency measures.

Consolidation has also manifested through acquisitions. Earlier this month, Bybit launched a locally operated exchange in Indonesia following its acquisition of a majority stake in NOBI, a domestic digital asset firm. The move expands Bybit's presence in one of Asia's largest cryptocurrency markets.

Together, these developments underscore a shifting landscape in which fewer platforms command a growing share of the market. Some exchanges are closing their doors, while others are expanding into new regions through strategic acquisitions.