Lorenzo Valente, director of digital assets research at ARK Invest, says the crypto industry is experiencing its deepest consolidation phase in history, far more significant than during previous bear markets. Revenue concentration has reached an all-time high, with Hyperliquid and Pump.fun alone accounting for 67% of all crypto application revenues, rising to nearly 80% when adding Ethena. Meanwhile, total application revenues dropped approximately 23% quarter-over-quarter to around $485 million in Q1 2026. Valente expects more mergers and acquisitions, Chapter 11 bankruptcies, and project closures in the coming months, but describes this consolidation as « extremely bullish » for the industry as it eliminates weaker projects in favor of solid platforms.
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