- ARK Invest says Hyperliquid Pump.fun, and Ethena now generate nearly 80% of app revenue.
- Crypto consolidation is accelerating with closures, mergers, acquisitions, and Chapter 11 filings.
- Revenue remains concentrated as smaller protocols expand market share alongside leaders.
Lorenzo Valente, a researcher at ARK Invest, said the crypto market is undergoing what he described as the largest consolidation phase in its history, surpassing the restructuring seen during previous bear markets.
In a statement shared on X, Valente said capital has become more cautious, leading to the shutdown of teams and exchanges that lack product-market fit. He also pointed to record-high revenue concentration across applications, middleware, and Layer 1 networks, stating that Hyperliquid and Pump.fun account for 67% of total application revenue, while adding Ethena brings the top three platforms’ combined share to nearly 80%.
Valente said he expects the trend to accelerate in the coming months through more mergers and acquisitions, Chapter 11 filings, business closures, and acqui-hires.
Protocol Revenue Shifts Toward Leading Platforms
Valente’s comments came as protocol market share data showed revenue becoming more concentrated among a small number of applications. Pump.fun remained the largest contributor between February 2025 and early July 2026, although its share declined around August 2025 before recovering in 2026.
Hyperliquid expanded its position throughout the period and finished as the second-largest contributor. At the same time, smaller protocols, including Ethena, Aave, Lido, Jupiter, Ore, PancakeSwap, Trojan, and Sosovalue, gradually increased their combined market share, broadening participation across the market even as leading platforms retained the largest revenue shares.
Earlier figures from ARK Invest’s first-quarter 2026 DeFi report also pointed to growing revenue concentration, although they covered a different period. The report stated that total application revenue declined about 23% quarter over quarter to approximately $485 million.
During that period, Hyperliquid generated about $145 million in revenue, Pump.fun produced about $123 million, and Axiom recorded approximately $58 million. Together, those three applications accounted for roughly 67% of tracked application revenue through March 31. The figures differ from Valente’s more recent analysis and should be treated as separate measurements.
Crypto Firms Face Growing Wave of Closures and Restructuring
Recent developments across the digital asset industry have mirrored the consolidation trend highlighted by Valente. On July 26, Storj Labs filed voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Northern District of West Virginia while stating that its decentralized storage network would continue operating under court supervision.
Exchange operators have also announced planned exits. BitMEX said it will close its exchange on Sept. 23 following a strategic review by parent company HDR Global Trading. BitMart also began winding down operations, ending new registrations and deposits on July 26, with trading scheduled to stop on Aug. 26 before the platform ceases operations on Jan. 31, 2027.
Additional industry data provides a broader context. RootData’s 2026 archive lists 99 projects that announced closures, entered bankruptcy proceedings, or remained unavailable for extended periods. Earlier this year, ZeroLend also announced its shutdown, citing sustainability, liquidity, and operational risks.
Related: Why Stocks Are Rising While Crypto Consolidates in 2026
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