Tom Farley, CEO of Bullish and former NYSE president, warned that the cryptocurrency industry is headed for significant consolidation as larger firms begin buying smaller projects, reducing fragmentation in the months ahead. Speaking to CNBC, Farley said the recent market downturn will speed up that process: Bitcoin was roughly 45% below its October all-time high of about $126,100 and trading near $69,405 when he spoke.
Farley said consolidation should have begun earlier but was postponed by inflated valuations and unrealistic expectations. He described situations in which startups with limited revenue sought buyout prices tied to peak 2020-era valuations, a dynamic he expects to end. Many teams, he added, will come to see they have standalone products rather than full businesses and will pursue mergers or sales to achieve scale.
While consolidation can result in stronger, more streamlined survivors, Farley cautioned it also brings negative effects: redundancies, layoffs and operational disruption as companies integrate or wind down parts of their operations.
Supporting the view of a more selective funding environment, Eva Oberholzer, chief investment officer at Ajna Capital, told Cointelegraph in September 2025 that venture investors are now much more discerning. She said the sector appears to be entering a later, more mature phase of the technology cycle, with capital deployed more cautiously.
This report was produced under Cointelegraph’s editorial standards for independent, transparent journalism. Readers are encouraged to verify details independently.