Crypto revenue concentration hits 80% among top projects as weaker players exit, signaling deeper industry consolidation.
ARK Invest expects increased bankruptcies, project shutdowns, and mergers in the crypto sector as consolidation accelerates. Revenue is highly concentrated, with the top three projects accounting for nearly 80% of total revenue and two platforms dominating 67% of application revenue.
This trend surpasses previous bear markets, as teams and exchanges without product-market fit exit. Capital allocation is becoming more selective, with talent acquisitions and M&A activity likely to rise in the coming months.
The firm did not specify immediate market reactions but highlighted structural shifts in the industry.