Crypto consolidation occurs when:
- Prices fluctuate, and weaker projects are weeded out
- Stronger projects absorb or merge with weaker ones
- Market sentiment shifts, leading to reduced speculation
Reasons for consolidation:
- Market correction
- Regulatory clarity
- Shifts in investor sentiment
- Technological advancements
Consolidation can lead to:
- Healthier market
- Increased stability
- Opportunities for stronger projects to grow
It can also result in:
- Losses for investors in weaker projects
- Reduced market volatility
Consolidation is a natural part of market cycles.