Which of the following best describes the importance of niche differentiation?

Niche differentiation plays a crucial role in ecosystems by allowing multiple species to coexist by utilizing different resources or habitats. This process minimizes direct competition between species, as they adapt to occupy specific niches where they can thrive without overlapping significantly with others. By reducing competition, niche differentiation facilitates not only the survival of diverse species but also encourages the process of speciation, where new species arise through evolutionary changes. This concept is central to understanding biodiversity, as it highlights how organisms can adapt and specialize in various roles within their environment, leading to the rich variety of life forms observed in nature.