Market Makers in Crypto: How the Liquidity Market Works

When you open a chart on a crypto exchange and see the price change every second, it may seem like the market moves on its own. In reality, there is a system behind this stability, where market makers play a key role. These are participants who provide liquidity to a crypto exchange by continuously placing buy and sell orders so that trades execute without delays.

In this article you will learn about:

• who market makers are and what affects liquidity
• how a market maker works on CEX and DEX
• why exchanges and users need market makers
• the companies that provide liquidity to the largest venues
• the role of market makers in stablecoin stability

Market makers turn trading from a chaotic set of orders into a managed process. They make the market predictable and ensure fair pricing. Without them, crypto market liquidity would disappear, and token swaps would become expensive and risky.

Crypto market making is a collaboration between an exchange and participants who maintain constant trading activity. The main task of a market maker is to keep the market alive and liquid. Every price must have both a buyer and a seller—otherwise the movement stops.

On centralized exchanges (CEX), the work revolves around the order book, which aggregates buy and sell orders. The difference between the best bid and ask is called the bid–ask spread. The smaller it is, the higher the exchange’s liquidity and the more reliable the trading.

Market makers operate with clear logic:

• they place orders at different levels, creating order book depth;
• they update quotes depending on trading volume and price movement;
• they buy slightly below and sell slightly above, earning on turnover rather than on predictions.

Exchanges like Binance, OKX, and Bybit provide them with direct API access with minimal latency, enabling order updates in milliseconds.

In decentralized ecosystems (DEX), things are different. There are no order books, and the role of a human is performed by an automated market maker. At the center is a liquidity pool where users deposit token pairs, for example USDT and TRX, allowing others to swap them directly.

The price is formed by an algorithm that maintains balance between assets. When one token is bought more often, its quantity decreases and its price rises. Pool owners receive a share of fees but bear the risk of impermanent loss. According to DeFiLlama, the total liquidity on AMM platforms exceeds $25 billion. Among the most well-known solutions are Uniswap, Curve, PancakeSwap, and SunSwap in the TRON ecosystem.

A market maker on an exchange supports trading stability and protects the market from sharp swings. When they operate steadily, users see predictable prices and fast order execution.

For an exchange, market maker activity means stable volumes and trader trust. If there are none, the spread widens and trading slows. When market making is set up correctly, the market is lively and transparent.

Market makers solve important tasks:

• maintain stable trading volumes, on which the exchange’s revenue depends;
• keep spreads tight and ensure fair prices without slippage;
• make the venue attractive to institutional investors who require reliable exchange liquidity.

According to Kaiko, market makers on crypto exchanges account for about 70% of daily trading volume on the largest CEXs. Thanks to them, even high-cap pairs like BTC/USDT or USDT/TRX remain stable. Without them, a single large order could move the market.

For users, the benefits of market making are obvious. The higher the liquidity, the faster the trades and the smaller the difference between buy and sell. On popular pairs, the spread does not exceed 0.02%, and a trader can save tens of dollars on large transactions.

When new tokens launch, market makers take on market stabilization and prevent the price from dropping sharply. Without them, an asset could lose up to 15% of its value in a few minutes. Their activity makes trading calmer and more reliable.

To understand who market makers are, you need to know that this business requires not only capital but also technology. Infrastructure matters, as does a team capable of handling millions of trades. Speed and reliability are decisive here.

Many companies operate in the market, but a few set the standards:

• Jump Trading manages liquidity for BTC, ETH, and TRX and works with Binance and Coinbase.
• Wintermute supports more than sixty venues, including OKX and Gate.io. Its daily turnover exceeds $3 billion.
• GSR Markets works with altcoins and derivatives and manages capital of over $500 million.
• Cumberland combines traditional finance and the crypto market.
• Flow Traders came from the ETF sector and became a major liquidity provider for digital assets.

Exchanges set requirements for professional participants. They must maintain order volume for each asset, keep the spread within 0.05–0.2%, and ensure uninterrupted algorithmic operation. In return, exchanges grant privileges, direct connectivity, and reduced fees.

Market making is not limited to funds. On DEX, any user can add tokens to a liquidity pool and receive a share of the fees. According to Uniswap Analytics, more than 60% of liquidity in DeFi is created by users.

Thus, market making on CEX and DEX evolves under different models, but the goal is the same for all—creating crypto market liquidity and predictable trading.

Stablecoins have become a vital part of the market. They are used for crypto salaries, international transfers, and P2P deals. In 2025, according to Messari, the volume of stablecoin transactions exceeded $10 trillion, with about 65% in USDT on the TRON network.

The price of such tokens stays near one dollar, and market makers are directly tied to their stability. When demand for USDT rises, they sell the token and stabilize the price. When interest falls, they buy it back and maintain exchange liquidity.

In spring 2023, when news about Silicon Valley Bank pushed USDC down to $0.88, it was market makers who restored balance. After 36 hours, the token was back at $1.

On TRON, USDT liquidity is supported by professional firms and user pools. USDT TRC20 market makers also work with other stablecoins—USDC, DAI, TUSD, FDUSD. The more active the market making, the lower the risk of price deviation and the higher the market’s credibility. The crypto market’s liquidity directly depends on their activity.

Market makers ensure the resilience of the entire crypto industry. Without them, liquidity disappears, prices become random, and spreads widen. Volatility increases, fees rise, and trading loses its purpose. They can be compared to dealer banks in the FX market. They create balance and prevent liquidity shortages.

For a trader, market making means confidence in fast and fair execution. For an exchange, it is the ability to retain clients and grow. For the entire industry, it remains the foundation without which the market cannot exist.

According to Chainalysis, market maker activity reduces intraday volatility of cryptocurrencies by an average of 35%. The higher the liquidity, the more stable the ecosystem. Exchanges compete for partnerships with leading market makers, while firms invest millions in strategy development and risk management.

Crypto market making remains the foundation of the market. It provides liquidity, stabilizes prices, and makes trading transparent. Without market making, the crypto market would look like a disorderly game where prices jump without logic and every trade becomes a risk.

Market makers help exchanges grow and maintain steady turnover. Thanks to them, traders execute orders without slippage. Users feel confident about a stable USDT rate. The higher the crypto market’s liquidity and participant activity, the more reliable the ecosystem becomes. Market makers’ work often goes unnoticed, yet it enables millions of transactions every day, amounting to tens of billions of dollars.