The cryptocurrency industry is experiencing a wave of mergers and acquisitions: giants are bottom-fishing, and the Web3 ecosystem is being reshaped.

Author: Gu Yu, ChainCatcher

The crypto world of 2025 is currently experiencing an unprecedented wave of mergers and acquisitions.

From DeFi protocols to asset management firms, from payment companies to infrastructure service providers, new M&A events are happening almost daily. Kraken acquired futures trading platform NinjaTrader for $1.5 billion, and Coinbase has recently made consecutive moves to acquire derivatives exchange Deribit and on-chain fundraising platform Echo. According to RootData, the number of crypto M&A deals in 2025 has reached 143, setting a new record and representing a 93% increase compared to the same period last year.

Why are industry giants so eager to pursue mergers and acquisitions amid a sluggish market? And what impact will this accumulation of M&A activity have on the market?

1. Giants are trading capital for time

Mergers and acquisitions are the most direct means for giants to expand their battlefield and enhance competitiveness.

In recent years, large centralized exchanges have thrived mainly through trading fees. However, as the secondary market turns bearish and regulations tighten, simple trading revenue can no longer sustain growth, and external Web2 giants are eyeing the space. Consequently, they have begun to expand through acquisitions—either to fill gaps in their ecosystems or to acquire compliant resources.

Through M&A, giants can bypass long periods of independent R&D and market cultivation, quickly bringing competitors or complementary teams under their umbrella, thereby rapidly expanding their product matrix—such as moving from spot trading to derivatives, or extending into payments and custody—enhancing their full-stack service capabilities.

More importantly, by purchasing entities with existing regulatory licenses or well-established compliance frameworks, platforms can more quickly obtain “proof of entry” into certain markets (such as licenses, compliance procedures, or clearing channels in specific jurisdictions), saving time compared to building compliance teams from scratch. This is especially critical in a regulatory environment that is becoming more stringent and where regional differences are significant.

Take Coinbase as an example. Since 2025, its M&A strategy has been almost “full-chain”: from derivatives exchanges to on-chain financing platforms, and to compliant custody companies, covering trading, issuance, payments, and asset management. An industry insider close to Coinbase revealed: “What they aim to build is a ‘Goldman Sachs’ style ecosystem in crypto—not relying on token prices, but on their service system.”

Kraken’s moves follow a similar logic. NinjaTrader, originally a veteran player in traditional finance, was acquired by Kraken, which essentially gives Kraken access to a regulated, compliant channel in the US, allowing it to bring traditional futures clients and tools into its ecosystem. In the future, Kraken will be able to offer more comprehensive derivatives and futures trading services without detours.

Recent M&A events Source: RootData

In other words, while smaller projects are still struggling with their next funding round or token issuance, industry giants are already exchanging cash for time and acquisitions for the future.

This trend is not limited to giants like Coinbase; Web2 giants such as Robinhood, Mastercard, Stripe, and SoftBank are also participating. This indicates that Web3 is no longer just a game for entrepreneurs and retail investors—it is attracting deep involvement from traditional capital, financial institutions, and even publicly listed companies. M&A has become a bridge for them to enter Web3.

Furthermore, the current market conditions provide a significant opportunity for increased M&A activity. The primary crypto market remains sluggish, with most projects facing difficulties in fundraising and exit strategies, putting them at a disadvantage in capital markets. Giants with ample cash reserves or access to capital markets can leverage their capital advantage to influence M&A pricing and structuring. For sellers, accepting equity swaps, partial cash and stock deals, or strategic partnerships is often more stable than risking an open-market token issuance. As a result, financially strong players have an inherent advantage in negotiations, enabling them to acquire key technologies, users, and licenses at more favorable costs.

2. Is the golden era of Web3 builders coming?

Historically, many Web3 projects relied on “token issuance—price appreciation—buyback/exits,” a path heavily dependent on secondary market sentiment and vulnerable to price volatility. M&A offers project teams a more stable alternative: integration with strategic buyers within or outside the ecosystem, obtaining cash or equity, or being incorporated into larger platforms’ product lines for continued development. This provides teams and technologies with a smoother path to capitalization, reducing reliance on token issuance and the “vampire” cycle of fundraising.

The M&A activities by Coinbase, Kraken, and others are to some extent broadening the ways Web3 projects and teams realize their value. In the current crypto winter, this also boosts confidence among investors in the equity side of the primary market, encouraging more capital to flow into crypto startups.

The rise of M&A in the crypto industry is no coincidence; it results from market maturity, restructuring of capital frameworks, and evolving regulatory and user demands. M&A enables faster reallocation of technology, user bases, and compliance capabilities within the crypto market. Leading companies use acquisitions to strengthen and expand their moat, while smaller projects see M&A as a more stable exit and growth path.

In the long term, this wave of M&A is expected to motivate many crypto projects—whether originating from technical communities or marketing firms—to develop into genuine commercial entities with clear user scenarios and solid technology, focusing more on product experience, compliance, and business implementation. Undoubtedly, this will benefit the industry’s long-term healthy development and accelerate its mainstream adoption.

Of course, M&A is not a panacea. Giants still face many uncertainties, such as integration challenges—how to incorporate the advantages of the acquired company across organization, product, compliance, and customer layers. Poor integration often results in “buying a shell.” There may also be valuation bubbles, which could negatively impact the acquirer’s cash flow and profitability.

Regardless, this is a major boon for crypto entrepreneurs and the long-term ecosystem. The market will offer a more friendly environment for projects that focus on solid technology and real-world scenarios. Questions like “If you don’t issue tokens, how can we exit?” will gradually fade from the minds of entrepreneurs and builders, as their golden era approaches.

The crypto industry in 2025 is at a pivotal turning point. Rather than viewing this as a capital game, it’s better understood as an essential step toward maturity.

In the coming years, we may see: exchanges evolving into one-stop financial supermarkets; wallets becoming not just storage tools but on-chain financial gateways; stablecoins transforming from mere stable assets into underlying currencies for cross-border instant settlements.

And all of this begins with this wave of “mergers and acquisitions.”