Market Making for Crypto Projects

Without market makers, the spread — the difference between the asset’s current market price and the price at which it can be bought or sold — would widen. This typically indicates the asset has low volume and won’t be as appealing to investors. To avoid that, market makers actively facilitate liquidity and maintain tight spreads.

Many of the smaller projects in the crypto space — and a few of the largest ones — raised money from private investors around the world in the crypto equivalent of a crowdfunding campaign. Investors would send funds — usually in the form of Bitcoin — to the project and receive coin or tokens in return. Most ICOs happened in 2017 and early 2018 and used Ethereum as a platform of operation via the ERC-20 standard. In 2018, the United States Securities and Exchange Commission (SEC) clarified their rules relating to fundraising for assets, which made it much harder for new cryptocurrency projects to issue their own tokens in this way.


While bitcoin and other major tokens have partially recovered, the sector remains far from the fever pitch it hit in late 2021. Approximately $50B worth of Bitcoin are now held by ETFs, countries, public and private companies,” DaCruz says. Crypto investors and industry experts believe a spot Bitcoin ETF would open the door for a new wave of investors to add cryptocurrency exposure to their portfolios.

  • As a result of the investigations, Binance.US CEO Brian Shroder recently said the exchange’s U.S. revenue has dropped 70% year-to-date.
  • She graduated from the University of Maryland, College Park and lives in Washington, DC.
  • Sixty trading venues, including the top DEXs in the world, are connected to its trading technology.
  • And last but not least, because of lower transactional fees, other trading algorithms they use may be even more profitable.
  • So, it was not surprising when the Total Value Locked (TVL) of Savings DAI surpassed $1 billion.

While there may be many reasons for the hike, MKR’s relevance in the market could be linked to its fundamental tokenomics. One is for governance, and the other is acting as a recapitalization resource. As a result of MakerDAO’s impressive network, MKR has also been able to put a good performance. While a lot of altcoins are dealing with downsides for a one-year performance, MKR could brag about its 71.21% increase in the last 365 days.

Develop your own Crypto Market Maker software

Let’s compare the leaders of the crypto market-making industry and what they offer. Ltd are not authorised or regulated in the UK by the Financial Conduct Authority (“FCA”). The protections provided by the UK regulatory system will not be available to you. Please check any law that may apply to you in relation to the information contained on this site. You acknowledge that you do not meet the FCA criteria of a retail consumer in the UK and shall access this information at your own risk, and will be responsible for any negative impact from applicable UK regulations. If you are planning to create crypto market making software, Antier can help.

crypto market making

Market making services helps to provide liquidity by submitting both bid and ask limit orders. The service provider would quote for buy and sell prices of a crypto asset at the same time, as it helps to bridge the gap of prices and ensure liquidity. Establishing liquidity is crucial for the success of any cryptocurrency exchange platform. With Yellow’s Crypto Market Making, you can ensure the competitive liquidity of your crypto platform through our expert strategies including liquid crypto assets. Our market-making strategies, algorithmic trading, and token growth expertise will ensure your business stays competitive in a rapidly-evolving crypto market. We leverage our deep understanding of digital asset liquidity, market structure, financial derivatives and quantitative investing to provide liquidity solutions ranging from basic execution services to structured products.

Stellar Price Prediction 2023, 2024, 2025: Will The XLM Coin Reach $1 in 2025?

You should always check with the product provider to ensure that information provided is the most up to date. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. One of the biggest winners is Axie Infinity — a Pokémon-inspired game where players collect Axies (NFTs of digital pets), breed and battle them against other players to earn Smooth Love Potion (SLP) — the in-game reward token. This game was extremely popular in developing countries like The Philippines, due to the decent income they can earn. Players in the Philippines can check the price of SLP to PHP today directly on CoinMarketCap.

crypto market making

They offer the liquidity any cryptocurrency exchange needs to function while earning money off the difference between the ask and bid prices. In the volatile world of cryptocurrency, having consistent spreads and healthy order books is crucial for maximizing profits. In today’s crypto space, the liquidity provision business leaves little room for the second-best in technology and infrastructure, not to mention the usage of retail market making bots.

Automated Market Makers (AMM)

We have successfully integrated with more than fifty decentralized and centralized exchanges, offering comprehensive coverage across the entire digital asset ecosystem. We construct critical market maker crypto exchange systems that efficiently process billions of dollars worth of transactions on a daily basis. We are a leading crypto-native market making company, comprising a team of skilled traders, developers, and innovators who constantly push the boundaries to shape the future of Web3. Our team of highly skilled and seasoned algo trading professionals specializes in quantitative and high-frequency trading. Play-to-earn (P2E) games, also known as GameFi, has emerged as an extremely popular category in the crypto space.

However, on decentralized exchanges (DEXs), conventional order books have been replaced by liquidity pools. Market makers and liquidity providers deposit tokens in these pools to earn passive income instead of profiting from the buy-sell spread. As one of the leading crypto market maker companies, we stand ready and equipped to buy and sell digital assets to improve the accessibility and liquidity of the tokens. We understand the significance of liquid trading environments in both emerging and mature markets.

Is having a market making bot enough to provide liquidity for a project?

When an investor buys stock, they are buying a share of ownership of a company, which means they’re entitled to do things like vote on the direction of the company. If that company goes bankrupt, they may also receive some payment once its creditors have been paid from crypto market making its liquidated assets. While it’s possible to invest in cryptocurrencies, they differ a great deal from traditional investments, such as stocks and shares. Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation.

crypto market making

“Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress,” the congressmen said in the letter. Get this delivered to your inbox, and more info about our products and services. The article is intended for informational purposes only and should not be considered professional advice or a substitute for specific expertise.

Invest in the Future

Price volatility has long been one of the features of the cryptocurrency market. When asset prices move quickly in either direction and the market itself is relatively thin, it can sometimes be difficult to conduct transactions as might be needed. To overcome this problem, a new type of cryptocurrency tied in value to existing currencies — ranging from the U.S. dollar, other fiats or even other cryptocurrencies — arose. These new cryptocurrency are known as stablecoins, and they can be used for a multitude of purposes due to their stability.

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