Exchange closures and acquisition activity add context to Lorenzo Valente’s warning that crypto revenue is concentrating in a shrinking group of protocols and platforms.
The crypto industry is in what ARK Invest research associate Lorenzo Valente described as its biggest consolidation phase yet, with revenue and investor attention flowing toward a smaller group of protocols. Valente said Hyperliquid and Pump.fun account for roughly 67% of total crypto application revenue and that the share rises to nearly 80% when Ethena is included, which he said points to record-high concentration across the sector. He argued that investors have become more selective, making it harder for projects and exchanges without strong product-market fit to attract capital, and said the trend could lead to more mergers and acquisitions, Chapter 11 bankruptcies, shutdowns and acqui-hires in the coming months. Recent examples include BitMEX’s planned September closure, BitMart’s wind-down through January 2027, and Bybit’s Indonesia expansion through its majority-stake acquisition of NOBI.