The crypto industry is entering its biggest consolidation phase yet, with revenue increasingly concentrated among a handful of protocols, according to ARK Invest analyst Lorenzo Valente. The trend is expected to trigger a wave of mergers, acquisitions, and exchange closures in the coming months.
The analyst's take
Valente's assessment, shared this week, points to a maturing market where smaller players struggle to compete. He didn't name specific firms, but the pattern is clear: the biggest blockchain networks and exchanges are capturing a growing share of total industry revenue. That leaves less room for mid-tier and niche projects to survive on their own.
Why revenue is concentrating
Several forces are at work. User activity has been shifting toward established platforms with deeper liquidity, stronger security track records, and more developer activity. At the same time, institutional money tends to flow to the largest, most regulated venues. The result is a self-reinforcing cycle: bigger protocols get more users, more fees, and more attention, while smaller ones get squeezed.
This isn't a sudden shock — it's been building for months. But Valente's warning suggests the pace is about to accelerate.
What comes next: M&A and closures
If revenue keeps concentrating, the natural outcome is a shakeout. Weaker projects will either sell to stronger ones or shut down entirely. Exchanges that can't maintain volume or compliance will face the same fate. Valente expects more M&A activity as larger players scoop up talent, user bases, and technology at discounted prices.
For users, that could mean fewer choices but potentially more stable platforms. For founders, it's a signal to either scale up fast or prepare an exit.
The coming quarters will test whether the industry can absorb the shakeout without broader disruption. No one is predicting a crash — just a leaner, more concentrated landscape.
