Crypto Merges, Not Merely Survives: The Biggest Consolidation Yet

Crypto is entering its most significant consolidation phase yet, according to ARK Invest’s Lorenzo Valente, who noted that Hyperliquid and Pump.fun alone account for 67% of total crypto application revenue, with Ethena bringing the top three to nearly 80%.

Stars Aligning: Market Consolidation

Valente’s X post highlights how the crypto ecosystem is tightening its competitive circle, concentrating power among a handful of dominant protocols.

Power Players

■Hyperliquid: $3.5 billion in perpetual futures revenue

■Pump.fun: $1.2 billion in memecoin launchpad revenue

■Ethena: $1.8 billion in synthetic dollar protocol revenue

Investor Mindset

Investors are increasingly selective, favoring projects with strong product‑market fit and high liquidity, while shunning weaker ventures.

Roadmap: Mergers and Closures

■BitMEX will shut down in September

■BitMart will cease trading on August 26 and close operations by January 2027

■Bybit acquires a majority stake in NOBI, launching a local exchange in Indonesia

Why This Is a Bullish Opportunity

Consolidation forces underperforming projects out, redirecting venture capital to more resilient infrastructures and setting the stage for regulatory compliance at scale.

Future Outlook

■2025 is expected to see increased M&A and acqui‑hiring

■Restructuring, Chapter 11 bankruptcies, and project shutdowns could rise

■The crypto industry could experience a “record‑high” growth trajectory

As competition narrows, only the most robust players will endure, offering institutional investors a more reliable, scalable, and regulator‑compliant market—though it also introduces new challenges in market efficiency and transparency.