In the coming months, the crypto market is expected to see an increase in project acquisitions by larger companies, potentially leading to a significant reduction in fragmentation. This view was expressed by Bullish CEO Tom Farley in an interview with CNBC.
“I worked in the exchange sector during continuous large-scale consolidation. The same will begin to happen in the cryptocurrency industry,” he stated.
Until 2018, Farley served as president of the New York Stock Exchange. In his opinion, the recent decline in digital assets has been the main catalyst for this forecast.
However, the top executive believes that the correction should have occurred earlier—about a year or two ago—but inflated valuations maintained false optimism.
“The dream will soon end. People will realize they don’t have a business, they have products, so they need to consolidate and scale, and this will happen,” added the Bullish CEO.
Consolidation in the crypto industry could have both positive and negative consequences. Larger companies will absorb inefficient projects, but the process risks leading to duplication of functions, layoffs, and internal upheavals in the sector, Farley noted.
At the time of writing, Bitcoin is trading around $69,000. The asset has fallen approximately 45% from its peak of $126,000.
As reported, the market correction resulted in multibillion-dollar losses for Strategy. The company’s operating loss reached $17.4 billion.