Summary
TLDR: Smaller projects in competitive industries may merge to survive, especially in sectors like Layer 1 chains, DEXs, DeFi protocols, node operators, and NFT projects.
Key Points
1. Projects that are unable to compete with larger competitors may look to merge their businesses in order to stay afloat.
2. The next wave of mergers and acquisitions is likely to occur in sectors with a high degree of fragmentation, such as Layer 1 chains that didn’t break into the Top 10, decentralized exchanges (DEXs), decentralized finance (DeFi) protocols, node operators, and possibly even non-fungible token (NFT) projects.
3. Merging businesses can help smaller projects pool their resources and expertise to better compete with larger players in the industry.