[Digital Today reporter Yoonseo Lee] The crypto industry is being reshaped into a structure in which revenue concentrates in a small number of protocols, and the broader market has entered a consolidation phase at an all-time high level, an assessment said.

On July 29 (local time), blockchain media outlet Cointelegraph reported that Ark Invest analyst Lorenzo Valente (Lorenzo Valente) viewed fundraising as becoming more difficult for projects and exchanges with weak product-market fit as investors become more selective.

Valente pointed to rapidly rising revenue concentration in the crypto industry. He explained that projects and exchanges without clear product-market fit have found it harder to attract capital and that, as those operators ultimately shut down, revenue is gathering in a small number of protocols.

He cited the revenue share of crypto applications. Valente said the perpetual futures exchange Hyperliquid and memecoin launch platform Pump.fun account for about 67 percent of total crypto application revenue. Adding synthetic dollar protocol Ethena brings the top three close to 80 percent.

Valente said this trend is likely to accelerate over the next few months. He expected an increase in mergers and acquisitions, filings under the U.S. Bankruptcy Code Chapter 11, project closures and acqui-hires aimed at securing talent. He added, however, that this structure has a very positive effect on the crypto industry.

Cases of exchanges halting operations are also continuing. BitMEX said it will close its exchange in September. It previously moved to speed up the delisting of trading pairs and derivatives contracts, citing insufficient trading demand as the reason.

BitMart also announced it will end trading services on Aug. 26 and then begin procedures for a full operational shutdown in January 2027. BitMart said it made the decision after reviewing operating conditions, the market environment and its future strategic direction.

Consolidation is being driven not only by closures but also by acquisitions. Bybit acquired a majority stake in Indonesian digital asset firm Noby early this month and then launched an exchange operated locally in Indonesia. It is a move aimed at expanding its footprint in Indonesia, seen as one of Asia's major crypto markets.

This trend is also linked to where money is flowing. As investors move more selectively, protocols with proven ability to acquire users and generate revenue are taking a larger share, while other operators face growing pressure to exit. As a result, attention is expected to focus on whether revenue concentration in a small number of core protocols deepens further, and how quickly mergers and acquisitions and operational shutdowns of exchanges and projects increase in the process.

I believe Crypto is going through the biggest consolidation phase in its history, far more profound than in previous bear markets. The market structure has changed. Capital is much more selective, and teams and exchanges without real PMF are shutting down. Revenue concentration… pic.twitter.com/oY6pGSPV32