Definition ∞ Industry Consolidation describes a market trend where smaller companies or projects are acquired by or merge with larger, more established entities. This process typically results in fewer, but larger, participants dominating the market sector. Consolidation can occur due to various factors, including competitive pressures, economic downturns, or the pursuit of greater market share and operational efficiencies. It often signifies a maturing phase within a particular industry.
Context ∞ Industry Consolidation is a recurrent theme in cryptocurrency news, particularly during bear markets or periods of heightened regulatory scrutiny. Acquisitions of smaller startups by major exchanges or blockchain firms are common, aiming to expand services or eliminate competition. This trend is closely watched as it can influence market structure, innovation pace, and the overall competitive landscape within the digital asset space.
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