Record-breaking! The volume of M&A transactions in the encryption industry surged in October, with CEX giant acquiring Echo for $375 million.

In October 2025, the Crypto Assets industry witnessed a record wave of mergers and acquisitions (M&A), with a total of 21 major transactions recorded, accumulating to 144 M&A events for the year, doubling the number compared to the previous year. This wave signifies that the industry is accelerating its shift towards asset integration and regulatory maturity. Among them, a major US CEX acquired Echo for $375 million to enhance trading infrastructure, another mainstream CEX acquired SMALL Exchange for $100 million to expand the derivation market, and Modern Treasury acquired Beam for $40 million to strengthen its encryption payment system, highlighting institutional interest and strategic shifts.

Trading Boom: Giants Consolidate Market Position Through Acquisitions

The acquisition activities in the crypto industry are no longer just integrations between small startups, but rather strategic moves by leading giants to quickly acquire technology, enhance compliance capabilities, and expand market share.

• October M&A Frenzy: In October 2025, a record 21 M&A transactions occurred in the crypto space. This year's 144 M&A events have already surpassed last year's total by more than double, setting a new industry benchmark.
• Mainstream CEX strategic acquisition:
  • A mainstream CEX made an acquisition of Echo for $375 million, aiming to enhance its trading infrastructure.
  • Another mainstream CEX acquired SMALL Exchange for 100 million dollars, aiming to expand its derivation market.
• Payment System Upgrade: Modern Treasury acquired Beam for $40 million, marking its commitment to strengthening its Crypto Assets payment system.
• Strategic Shift: Current trends indicate that the company is shifting from issuing new tokens to acquiring established platforms, a transition driven by the pursuit of asset integration and regulatory compliance.

Market Evolution: From “Token Issuance” to “Integration and Compliance”

The unprecedented expansion of M&A activities reflects the evolution of the Crypto Assets industry, indicating that the industry is transitioning from the “barbaric growth” stage to the “mature stability” stage.

• Industry consolidation trend: Large-scale acquisitions indicate an acceleration of industry consolidation, helping to streamline operations and enhance product supply to better meet stringent regulatory requirements.
• Institutions value compliance: FalconX CEO Raghu Yarlagadda emphasized that ensuring the accessibility of tokenized financial products while meeting strict global regulations is crucial. This indicates that compliance has become a core consideration in acquisition decisions.
• Promoting product innovation: Hany Rashwan of 21Shares confirmed that their focus is on the global expansion of regulated encryption exchange-traded products (ETP). Acquisitions can provide these companies with opportunities to expand capacity, increase market share, and strengthen competitive positions.

The Impact of Bitcoin Market Volatility and M&A

While M&A activities are in full swing, the prices of major crypto assets like Bitcoin are still fluctuating, reflecting the complexity of the market.

• Bitcoin Price Volatility: According to CoinMarketCap data, the current price of Bitcoin is $109,672.97, with a market capitalization of $2.19 trillion. Although the 24-hour trading volume fluctuated by as much as 47.33%, its price fell by 0.32% within 24 hours and decreased by 4.70% over the week, reflecting broad market volatility.
• Potential benefits of M&A: Insights from Coincu suggest that the latest wave of M&A will bring about potential financial and technical transformations, aiding in industry standardization and strengthening adaptability to regulation.

Conclusion

The record M&A activity in October 2025 clearly indicates that the encryption industry is undergoing a profound structural transformation. Major players are shifting the industry's focus from early speculation and new coin issuance to improving infrastructure, asset integration, and actively adapting to the global regulatory environment through billions of dollars in strategic acquisitions. This wave of integration will help enhance the overall maturity and competitiveness of the industry, ultimately paving the way for further inflows of institutional capital.