The crypto industry is moving into what some researchers are calling one of its biggest consolidation phases ever. Instead of capital being spread across a large number of projects, it is now becoming concentrated in a handful of companies and protocols that have shown strong product market fit. Meanwhile, more and more exchanges and crypto firms are shutting down operations, going bankrupt, or downsizing, all of which just shows how tough it is for businesses in today’s market.
ARK invest researcher Lorenzo Valente recently pointed out this shift, saying the current wave of consolidation is way deeper than anything seen in past markets. His comments followed announcements from major exchanges BitMEX and BitMart, both of which said they plan to close down operations, joining a growing list of crypto companies that have disappeared, filed for Chapter 11, or started laying people off.
Revenue Concentration Signals a Shift in the Crypto Market
Valente says the structure of the crypto market has changed a lot. He sees investors getting much pickier, putting money only into companies that have genuinely found their market. Because of this, teams and exchanges that have not managed to build sustainable businesses now face a serious uphill battle.
He highlighted how revenue is piling up in certain corners of the industry: across apps, middleware, and Layer 1 blockchains. Hyperliquid and Pump.fun alone now account for 67% of total application revenue. Add Ethena, and the top three projects control nearly 80% of the space’s application revenue.
Valente expects this concentration to sharpen further in the months ahead. He predicts more mergers and acquisitions, more Chapter 11 filings, more firms and exchanges winding down, and more acqui-hires as companies look for ways to consolidate or just survive.
Valente describes this phase as “extremely bullish” for crypto, suggesting that as weaker players exit, the stronger ones will start to shine.
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
— Lorenzo Valente (@LorenzoARK) JULY 28, 2026
Exchange Shutdowns and Industry Layoff Reflect Ongoing Consolidation
Valente’s remarks come at a time when many crypto companies have already revealed major challenges to their operations.
BitMEX, for example, says it will close its exchange operations on 23 September 2026 at 04:00:00 UTC. Its owner, HDR Global Trading Limited, made the call after a strategic review of the business. BitMEX pointed to its 11 year old history and its role in introducing the 100x leverage perpetual swap, a product it calls one of the most traded in crypto. The company said it has never lost any customer funds to hacks. Users have been urged to close out positions and withdraw any assets soon, but BitMEX has said customer funds are still safe during this period.
BitMart announced a similar, orderly shutdown of its trading platform, citing a review of its operations, market, and future plans.
BitMart’s shutdown will happen in stages. From 26 July 2026 at 01:30 UTC, new signups, deposits, and orders were suspended. All trading will stop on 26 August 2026 at 01:00 UTC. The platform will officially close 31 January 2027 at 15:59 UTC. BitMart says withdrawals remain available and encourages users to close positions, complete KYC if needed, and move funds as soon as possible.
These are not isolated cases. They join a growing list of companies closing operations, entering bankruptcy, or letting staff go.
According to a crypto market roundup shared by Fintech Frank, Movement Labs and Storj have filed for Chapter 11. Zapper announced an orderly shutdown after seven years in business. AscendEX also announced it is closing down.
Crypto Bear Market Round-Up
Bankruptcies / Wind Downs
– Movement Labs files for Chapter 11 bankruptcy
– Storj (cloud data firm) files for Chapter 11 bankruptcy
– BitMart begins winding down operations
– BitMEX begins winding down operations
– Zapper announces an orderly wind…— Frank Chaparro (@fintechfrank) JULY 27, 2026
That same report listed more layoffs across the sector. Bybit cut another 30% of its team. Gemini let go about 30% of its staff in early 2026. Coinbase axed around 700 jobs, roughly 14% of its workforce on 5 May 2026. BitGo reduced its workforce by 15%, Uphold let go 17% of its global staff, and Matter Labs also reduced staff while switching focus to its institutional privacy platform, Prividium. Polygon Labs reportedly laid off 60 employees after its $250 million acquisition.
