Digital Asset Industry Enters Largest Consolidation Phase, ARK Analyst Says
The digital asset industry is undergoing its largest phase of consolidation, with revenue concentrating among a handful of protocols, according to ARK Invest analyst Lorenzo Valente. Weak projects are finding it increasingly difficult to attract liquidity.
ARK Invest analyst Lorenzo Valente stated that the digital asset industry is entering its most significant consolidation phase yet. He noted that revenue is increasingly flowing to a small number of protocols, while projects without a sustainable product are struggling to secure funding.
Investors have become noticeably more selective, Valente observed, making it harder for platforms and exchanges to attract liquidity. As a result, he warned, weaker projects face growing challenges to survive.
As an illustration, the analyst pointed to Hyperliquid and PumpFun, which together account for roughly 67% of total revenue among crypto applications. Adding the synthetic dollar protocol Ethena pushes the combined share close to 80%.
Source: ForkLog