That’s the view of David Duong, who leads investment research at Coinbase, and sees the sector moving into a consolidation phase.
After years of rapid growth, many DATs are now struggling to convince investors they can stand the test of time. Duong argues that mergers, acquisitions, and scale will separate leaders from laggards. The recent move by Strive to absorb Semler Scientific is just one example of what he expects will become a trend as companies fight for relevance.
At the same time, some players are throwing capital at share buybacks to shore up confidence. Solana-focused DeFi Development Corp ramped its program up to $100 million, while Thumzup, a Trump-linked venture, boosted its allocation tenfold. Yet not all buybacks land well – TON Strategy Company’s attempt backfired, with shares dropping instead of rising.
Beyond Financial Engineering
To stand out, many DATs are experimenting with crypto-native tactics, from staking to looping strategies that recycle collateral across DeFi to chase higher yields. Duong says these models could define the next phase of the industry, but also warned that regulation and liquidity conditions will dictate how sustainable they are.
Concentration Already Visible
Despite turbulence, the numbers show how influential treasuries have become. Collectively, they hold more than 1.4 million Bitcoin, worth over $166 billion, alongside 5.4 million Ether and more than 13 million Solana tokens. In Duong’s view, this reinforces that treasuries aren’t just a niche idea – they’re already shaping supply dynamics in major networks.
What Comes Next
Standard Chartered recently predicted that many smaller DATs won’t survive this cycle, echoing Duong’s view. The future, he argues, will be decided less by who can launch flashy buybacks and more by who can build trust, scale responsibly, and carve out dominance in specific tokens.
In short, the digital asset treasury boom may soon turn into a consolidation wave, with only a handful of giants left standing.