Market makers play an indispensable role in financial ecosystems. Their continuous presence ensures liquidity, efficiency, and stability, which benefits traders, investors, and exchanges alike. Traders enjoy the ability to execute orders quickly and at fair prices, reducing the risks associated with price gaps or illiquid markets. Exchanges and projects benefit from higher trading volumes, improved market perception, and increased participation from investors.
Additionally, market makers contribute to price discovery—the process by which the market determines an asset’s value. By consistently providing buy and sell quotes, they create a reference point for other participants, allowing prices to reflect current supply and demand dynamics accurately. This is especially important in volatile markets like cryptocurrencies, where prices can swing rapidly without consistent market making support.
