Pump.fun

Ethena

Storj

Axiom

Momentum

<ul>
 <li>ARK Invest said capital is becoming more selective, driving mergers, shutdowns, bankruptcies, and acquisitions across the crypto industry.</li>
 <li>Lorenzo Valente said Hyperliquid, Pump.fun, and Ethena now capture nearly 80% of crypto application revenue.</li>
 <li>Recent closures, exchange wind-downs, and acquisitions highlight growing consolidation across crypto infrastructure and trading platforms.</li>
</ul>
<p>The crypto industry is entering its deepest consolidation phase, according to ARK Invest Director of Digital Assets Research Lorenzo Valente. He <a href="https://x.com/LorenzoARK/status/2082153304574791868?s=20" rel="noopener noreferrer nofollow">said</a> capital has become more selective, forcing projects and exchanges without product-market fit to exit the market. Valente also expects mergers, bankruptcy filings, shutdowns, and talent acquisitions to increase over the coming months as revenue concentrates among fewer companies.</p>
<h2 class="wp-block-heading" id="strong-revenue-concentrates-across-crypto-sectors-strong"><strong>Revenue Concentrates Across Crypto Sectors</strong></h2>
<p>According to Valente, revenue concentration has reached record levels across crypto applications, middleware, and <a href="https://cryptofrontnews.com/robinhood-explains-why-it-chose-ethereum-layer-2-over-l1/" rel="noopener noreferrer nofollow">Layer 1</a> networks. He said Hyperliquid and Pump.fun now generate 67% of total application revenue.</p>
<p>Adding Ethena raises the combined share to nearly 80%, according to Valente. He said the market structure has changed, with a small group of projects capturing most economic activity.</p>
<p>ARK Invest's first-quarter 2026 DeFi report also highlighted concentration across applications. The report showed Hyperliquid, Pump.fun, and Axiom generated roughly 67% of tracked application revenue through March 31, although those figures cover an earlier reporting period.</p>
<h2 class="wp-block-heading" id="strong-closures-and-acquisitions-continue-strong"><strong>Closures And Acquisitions Continue</strong></h2>
<p>Valente said the next phase of consolidation will likely include more mergers, Chapter 11 filings, project closures, and acqui-hires. He added that stronger companies are increasingly positioned to absorb distressed competitors.</p>
<p>Recent developments reflect that trend across several market segments. Storj Labs entered voluntary Chapter 11 proceedings on July 26 while continuing network operations under court supervision.</p>
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<p>Meanwhile, <a href="https://cryptofrontnews.com/bitmex-sets-sept-23-shutdown-urges-users-to-withdraw/" rel="noopener noreferrer nofollow">BitMEX</a> announced it will close its exchange on Sept. 23 following a strategic review by parent company HDR Global Trading. BitMart also began winding down operations after suspending new registrations and deposits on July 26.</p>
<p>RootData's 2026 archive lists 99 projects that have closed, entered bankruptcy, or remained inactive for extended periods. The database includes several categories of project failures rather than bankruptcies alone.</p>
<h2 class="wp-block-heading" id="strong-infrastructure-deals-gain-momentum-strong"><strong>Infrastructure Deals Gain Momentum</strong></h2>
<p>Consolidation has also expanded through acquisitions. On July 27, <a href="https://cryptofrontnews.com/kraken-parent-payward-grows-revenue-amid-market-dip/" rel="noopener noreferrer nofollow">Payward</a>, Kraken's parent company, agreed to acquire Magic Labs' wallet-as-a-service business.</p>
<p>According to the companies, the platform has supported more than 60 million wallets, over $10 billion in stablecoin volume, and about 200,000 developers. Financial terms were not disclosed, and the companies expect the transaction to close within weeks, subject to customary conditions.</p>
<p>The post <a href="https://cryptofrontnews.com/ark-invest-says-crypto-consolidation-will-bring-more-mergers-bankruptcies-and-shutdowns/" rel="noopener noreferrer nofollow">ARK Invest Says Crypto Consolidation Will Bring More Mergers, Bankruptcies and Shutdowns</a> appears on <a href="https://cryptofrontnews.com" rel="noopener noreferrer nofollow">Crypto Front News</a>. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.</p>

ARK Invest Says Crypto Consolidation Will Bring More Mergers, Bankruptcies and Shutdowns

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