Final answer:
In bone deposition, dead chondrocytes are replaced with bony tissue, and osteoblasts form trabecular matrix around blood vessels during endochondral ossification, eventually leading to the creation of red marrow.
Step-by-step explanation:
The zone of bone deposition is where macrophages remove dead chondrocytes and calcified cartilage matrix, creating voids that are then filled with growing bony tissue surrounded by an osteogenic periosteum or osteoid that contains fibroblast-like cells which differentiate into osteoblasts. Around the blood vessels, osteoid secreted by the osteoblasts results in a trabecular matrix. This is part of a process called endochondral ossification, which is essential for the growth of long bones. The trabecular bone efficiently organizes and supports shifts in weight distribution, while crowding of nearby blood vessels by the trabecular bone eventually condenses into red marrow.