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Revenue concentrates, exits follow
Crypto is entering what ARK Invest researcher Lorenzo Valente described as its “biggest consolidation phase in history,” as revenue concentrates among a small set of protocols and investors become more selective.
“Hyperliquid and memecoin launchpad Pump.fun account for roughly 67% of total crypto application revenue”
Valente said Hyperliquid and Pump.fun account for roughly 67% of total crypto application revenue, and that including synthetic dollar protocol Ethena lifts the top three’s combined share to nearly 80%.
He added that he expects the trend to accelerate in the coming months, leading to “more mergers and acquisitions, Chapter 11 bankruptcies, project shutdowns and acqui-hires.”
The consolidation narrative is reinforced by exchange wind-down plans, including BitMEX’s announcement that it would shut down its exchange in September after a strategic review by owner HDR Global Trading, and BitMart’s decision to end trading services on Aug. 26 before winding down operations entirely in January 2027.
Shutdowns and bankruptcies
Valente’s consolidation forecast ties capital caution to operational exits, with Crypto News | Other stating that he said “capital is much more selective” and that “teams and exchanges without real PMF are shutting down.”
The same source links the shakeout to specific recent cases, including Storj’s Chapter 11 filing and BitMEX’s shutdown, while also describing BitMart’s staged disconnection that began on July 26.
Crypto News | Other reported that BitMart canceled registration of new users, the acceptance of cryptocurrency or fiat deposits, and the execution of trading orders, with final closure scheduled for August 26.
It also said BitMEX users must close positions and withdraw assets before the Sept. 23 shutdown, and that Storj’s restructuring would proceed through court motions, creditor claims and any required approvals.
M&A and what’s at risk
Beyond shutdowns, Valente’s consolidation thesis also points to acquisitions and talent-focused deals, with Cointelegraph | Western Alternative saying he expects “more mergers and acquisitions, Chapter 11 bankruptcies, project shutdowns and acqui-hires.”
“more mergers and acquisitions, Chapter 11 bankruptcies, project shutdowns and acqui-hires”
Crypto News | Other described one such deal as Payward, Kraken’s parent company, agreeing on July 27 to acquire Magic Labs’ wallet-as-a-service business, adding that the acquired infrastructure has supported more than 60 million wallets and over $10 billion in stablecoin volume.
The same report said financial terms were not disclosed and that the parties expect closing within weeks, subject to customary conditions, while also noting that the transaction will add embedded, non-custodial wallets to Payward Services.
For the broader market, the stakes in the sources are framed as a reshaping of who survives and who exits, with CryptoRank saying the consolidation deepens through “closures, mergers, acquisitions and Chapter 11 filings” as capital turns cautious.
