The pygmy seahorse has a layer of specialized cells called chromatophores in its skin. Chromatophores contain pigment granules that can be dispersed or concentrated to change the color of the skin. The seahorse also has a network of tiny muscles that can control the movement of the chromatophores. This allows the seahorse to quickly change its color to match the surrounding coral.
In addition to changing color, the pygmy seahorse can also change the texture of its skin. This is accomplished by a second type of specialized cell called a dermal papillae. Dermal papillae are small, fleshy projections that can be raised or lowered to change the texture of the skin. The pygmy seahorse uses this adaptation to match the texture of the coral around it, which makes it even more difficult for predators to spot.
The pygmy seahorse's ability to camouflage itself is essential for its survival. It allows them to blend in with their surroundings and avoid being eaten by predators. It is also helpful when they are hunting prey, as they can use their camouflage to ambush their prey.