12 Best Crypto Market Makers For Traders in 2025

Author

Alan Draper

Author

Alan Draper

About Author

Alan is the Chief Editor of guides and reviews on Cryptonews.com. He’s responsible for ensuring all the content on the site is accurate, up-to-date, and reliable.

Author Profile

Share

Copied

Fact Checked by

Ilija Rankovic

Crypto Editor

Ilija Rankovic

About Author

...

Author Profile

Last updated:

August 21, 2024 06:47 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Market makers ensure fully functioning markets for both retail and institutional traders. They provide liquidity to spot trading exchanges, not to mention derivative products like perpetual futures and options.

Liquidity is also provided to decentralized finance platforms, crypto startups, and over-the-counter brokers. This guide examines the top crypto market makers in the industry today. Read on to find a suitable liquidity provider.

What Is a Crypto Market Maker?

Let’s begin with an overview of what crypto market makers do and which services they provide.

In a nutshell, market makers ensure that crypto stakeholders have sufficient liquidity. Market makers provide liquidity to other market participants, ensuring a stable market price of a particular asset. This is a crucial requirement for smooth and functioning markets. One of the biggest beneficiaries is crypto exchanges – especially those offering pairs with limited liquidity and trading volume. The market maker will automatically create volume by entering buy and sell orders.

This allows traders to enter and exit positions without experiencing high slippage. Market makers are also prevalent on decentralized exchanges (DEXs). This is especially important, considering that DEXs rely on the automated market maker (AMM) mechanism. This means that trades are executed via liquidity pools funded by market makers.

Over-the-counter (OTC) brokers also require liquidity, allowing accredited and institutional traders to buy and sell large volumes. This needs to be done without negatively impacting market prices. Market makers are increasingly being used by crypto startups, too. For instance, they help presale projects with the initial listing process, ensuring the token has sufficient liquidity for traders.

What’s more, market makers can help new projects reach minimum volume targets. They can also help reduce volatility, meaning artificially create stable conditions. These are often core requirements when listing on tier-one exchanges like Binance, OKX, and Crypto.com.

The Best Crypto Market Makers Reviewed

Let’s take a closer look at the best crypto market makers. Discover each provider’s services and whether they’re suitable for your project’s requirements.

1. GSR Markets – The Best Solution for Exchange Market Making With Robust Crypto Liquidity

GSR Markets is the overall best option for exchange market making. This service is particularly attractive for new cryptocurrencies and/or those with a small market capitalization. GSR Markets automatically enters buy and sell orders based on real-time market conditions. This ensures smooth and functioning trading markets.

Otherwise, a lack of liquidity can result in high slippage, meaning orders will deviate from the intended execution price. Crucially, GSR Markets ensures that buyers are matched with sellers around the clock. It currently works with over 60 crypto exchanges, providing robust liquidity for market leading spreads. This covers both centralized and decentralized platforms.

What’s more, GSR Markets also ensures exchanges meet order book KPIs, with solutions tailored to the client’s needs. In addition to market making, this provider also offers OTC trading services. GSR Markets also specializes in decentralized finance (DeFi). This includes liquidity seeding, treasury management, and new token launches.

2. Cumberland – Institutional-Grade Liquidity for Spot Trading and Crypto Derivatives

Next on this list of crypto market makers is Cumberland. This provider offers institutional-grade liquidity for various crypto markets. This includes traditional spot trading on both centralized and decentralized exchanges. Cumberland leverages the time-weighted average price (TWAP) execution system for maximum efficiency.

Spot market liquidity can be provided for multiple fiat-driven pairs, including USD, GBP, EUR, and JPY. Additionally, Cumberland is a great option for trading platforms offering crypto-centric derivatives. This includes bilateral crypto options for Bitcoin and Ethereum. Options come with bespoke strike prices and expiry dates, as per the client’s needs.

Liquidity for listed options and futures is also available. In terms of reputation, Cumberland has been a leading market maker since 2014. The firm is a subsidiary of DRW, an established trading firm founded in 1992. Cumberland has offices around the world, including Japan, Singapore, the US, and the UK.

3. Wintermute – A Market Leader in OTC Brokerage Deals With Over 200 Supported Pairs

Wintermute is one of the best options for OTC brokerage deals. It supports over 200 crypto pairs from the spot trading markets. It promises ultra-tight spreads without additional fees, a perfect combination for large-scale investors. Its OTC division is available 24/7/365, and two algorithmic execution methods are supported.

This covers TWAP and volume-weighted average price (VWAP). This ensures OTC deals are executed swiftly and at the best available price. Wintermute also offers API integration for seamless and user-friendly order execution. OTC trades can also be facilitated via real-time chat systems.

In addition, Wintermute’s OTC services extend to crypto derivatives. This includes everything from non-deliverable futures and contracts-for-differences (CFDs) to options. Derivative products cover Bitcoin and hundreds of altcoin markets. Wintermute also provides risk management strategies, such as treasury diversification and hedging.

4. Bluesky Capital – Top-Rated Liquidity Provider for Newly Launched Crypto Tokens

The next market maker to consider is Bluesky Capital. It’s a great choice for projects with upcoming crypto listings on exchanges. Especially those who have just completed a presale fundraiser. Bluesky Capital provides a comprehensive liquidity program to ensure token launches enjoy smooth trading markets.

This includes 24/7 market making via algorithmic order execution. This ensures traders can seamlessly enter and exit positions without wide spreads and huge slippage. The program also helps new tokens increase trading volumes, and reduce the risks of price manipulation. These metrics can help new projects secure more prominent exchange listings.

Additionally, Bluesky Capital also offers liquidity services directly to exchanges. This helps lower-tier exchanges increase volumes, reduce volatility, and ultimately – increase their client base. Bluesky Capital also specializes in asset management, including hedging strategies and diversification into other markets, such as currency pairs and commodities.

5. Vortex – 360-Degree Liquidity and Market Making Services Backed by Machine Learning

Established in 2019, Vortex is a reputable global market maker. It has offices in the US, Europe, and Asia. Since its inception, Vortex has facilitated more than $100 billion in trading volume across over 40 centralized exchanges. Vortex offers a 360-degree service for projects of all sizes.

This includes fundraising from retail and institutional clients, exchange listings, and a fully-fledged marketing strategy. Once listed, Vortex provides 24/7 market making execution tailored to the client’s needs. This includes personalized targets, such as minimum 24-hour volumes and maximum volatility percentages.

It leverages proprietary machine learning algorithms to achieve these goals. This ensures lightning-fast execution with tight spreads and low slippage. Vortex is also a good option for consultation services. It offers bespoke solutions for token and NFT launches, Web 3.0 marketing, and smart contract development.

6. B2C2 – Spot and Derivative Liquidity With Real-Time Streaming and Custom Settlement Terms

Founded in 2015, B2C2 is a global liquidity firm with offices in the UK, the US, and Japan. It offers large-scale liquidity solutions to banks, hedge funds, and other financial institutions. It also directly services crypto exchanges and trading platforms. Not only does B2C2 offer real-time streaming prices, but clients can also access API connections via FIX and WebSocket.

Moreover, clients can create custom settlement terms. This ensures minimal counterparty risk and increased capital efficiency. B2C2 deals with the best cryptocurrencies to buy, including crypto-to-fiat and crypto-cross pairs. B2C2 is also one of the best options for OTC brokerage deals.

This includes the spot trading markets and derivative products. The latter includes options, futures, and CFDs. Clients can also access borrowing facilities in over 25 currencies. This feature is available via a single margin account for increased convenience. Structured loans are also possible via dual digital asset instruments (DDAIs).

7. Acheron Trading – A Great All-Rounder Supporting Over 15 Blockchains, 75 CEXs, and 20 DEXs

Acheron Trading is a technology-first market maker and liquidity provider. It specializes in over 15 blockchain standards, ensuring clients from the most popular ecosystems are catered for. Since launching five years ago, Acheron Trading has executed more than 400 token listings.

It has partnered with over 75 centralized exchanges, including the most prominent tier-one platforms. It also has partnerships with over 20 DEXs. Acheron Trading offers two execution models for clients seeking market making services. This covers the principal market making (PMM), which leverages the loan and call option model.

Alternatively, clients can opt for the designated market making (DMM) mechanism. This requires projects to commit tokens and cash, with revenue generated from monthly fees and a profit-sharing agreement. Acheron Trading has also developed a proprietary command station, aimed at token issuers, exchanges, and institutions alike.

8. BitQuat Capital – Best Option for Decentralized Exchanges Seeking Increased Liquidity and Volume

We found that BitQuat Capital is the best option for decentralized exchanges seeking increased liquidity and trading volumes. While DEX platforms allow retail clients to fund liquidity pools, this is rarely enough to facilitate trading requirements. BitQuant Capital’s solution is real-time liquidity on hundreds of pairs.

It helps exchanges create liquidity pools from the ground up and even integrates the AMM model. This ensures DEXs can offer 24/7 trading markets without needing order books. BitQuant Capital also leverages automated bots to hit trading volume targets. This is a core metric used by traders when selecting a suitable DEX.

Exchange clients also have access to risk mitigation tools. This includes anti-arbitrage trading, protecting exchanges from extended losses during wild volatility cycles. It also protects exchanges from sniper bots, ensuring traders have access to fair market conditions. In addition to DEXs, BitQuat Capital also serves centralized exchanges and individual crypto projects.

9. Gotbit – Strategic Market Making Solutions Including Support/Resistance Levels and Buybacks

Next on this list of crypto market makers is Gotbit. – a Web 3.0 specialist with an impressive track record. Some of its recent clients include GT Protocol, Props, Paal AI, and ChainGPT. Gotbit leverages the price action and deviation zone methodology to create bespoke solutions. It helps new crypto tokens achieve predetermined goals via advanced algorithmic programs.

This includes securing key support zones with increased buying pressure. What’s more, Gotbit creates custom buyback programs. This means the market maker will repurchase tokens with treasury funds. It can also scale execution orders in line with key developments and marketing campaigns.

Gotbit also specializes in initial exchange launches, including liquidity management and anti-snipe protections. It has also done business with the world’s leading exchanges, covering both centralized and decentralized platforms. Gotbit claims to have generated more than $170 million in client profits in the past year alone.

10. Empirica – Price-Stabilizing Algorithms for Order Book Efficiency and Stable Trading Conditions

Empirica has developed an algorithmic liquidity protocol that connects with the world’s leading exchanges. This includes top CEXs like Binance, Crypto.com, Kraken, MEXC, and HitBTC. It also serves the top DEXs, including Uniswap and PancakeSwap. Not to mention crypto derivative platforms like BitMEX and Bybit.

Its algorithmic solutions operate 24/7 with a 99% uptime. Capabilities include up to 4 million messages per minute and more than 2 TB of daily trading logs. Empirica archives order book efficiency by leveraging price-stabilizing tools. Not only does this increase trading volumes but it smooths out wild pricing swings.

It also uses the dynamic liquidity system, ensuring traders are protected from unfavorable slippage. These solutions are achieved with minimal impact on the project’s treasury. Empirica is also ideal for projects seeking new exchange listings. Services include exchange listing criteria, legal compliance, and fee negotiation.

11. Kairon Labs – Spread and Arbitrage Solutions for Tokens With Multiple Exchanges and Pairs

Kairon Labs is one of the best crypto market makers for semi-established projects. Especially those with multiple exchange listings and a variety of pairs. For example, consider a token that trades against USD, EUR, BTC, USDT, and ETH. The issue here is achieving a pricing equilibrium. This will result in inefficient markets, which can cause reputational damage.

The solution is Kairon Labs’ advanced algorithmic trading software. It’s already integrated on over 100 exchanges, allowing tokens to arbitrage pairs 24/7 in real-time. What’s more, the algorithm improves order book depth, ensuring token pairs come with tight spreads and minimal slippage.

Some of the exchanges working with Kairon Labs include Binance, Bybit, OKX, Kucoin, Bithumb, and MEXC. Derivative-centric platforms are supported too, such as Deribit. Kairon Lans also helps projects create and meet KPI targets, including CEX and DEX exchange listings. It also provides comprehensive performance metrics and insights.

12. DWF Labs – An Extensive Client Portfolio Including 20% of the Top 100 Projects by Market Cap

Last on this list of market makers is DWF Labs. Founded in 2018, DWF Labs has a highly impressive client portfolio. It has provided market-making services for 20% of the top 100 projects by market capitalization. This includes powerhouses like TRON, Algorand, Kava, Mantle, and FLOKI. Not to mention EOS, Jupiter, Gala Games, Fetch.ai, and Beam.

Its liquidity provision tools operate 24/7 with a 95% historical uptime. It leverages a data-driven approach to ensure volume, price, and liquidity KPIs are achieved. This is backed by in-depth reporting to ensure complete transparency. DWF Labs also has access to over 60 leading crypto exchanges.

This includes centralized and decentralized platforms. In addition, DWF Labs also offers OTC trading services. Powered by Talos and Fireblocks, its native infrastructure supports Bitcoin and some of the best altcoins. OTC blocks come with competitive pricing and access is provided via APIs.

How We Selected The Top Crypto Market Makers

We have a robust methodology when ranking the best crypto market markers. Some of the key research methods include liquidity and market depth, ensuring that clients of all sizes are catered for.

Execution speeds, alongside technological capabilities and customization features, were also considered. Read on for more information about our impartial ranking system.

Liquidity and Market Depth – 25%

Liquidity capabilities are one of the most important metrics to consider when choosing a crypto market maker. After all, no two requirements are the same.

• For example, consider a new crypto project that has just completed its presale campaign. It plans to launch on a decentralized exchange with a market capitalization of just $2 million. These requirements will be sufficient for most market makers.
• In contrast, now consider a large-cap pair like ETH/GBP on a tier-one exchange. The capital requirements will be significantly greater. Not only in terms of Bitcoin provision but also British pounds. In this instance, the exchange would need a blue-chip liquidity provider that can handle substantial volumes.

These capabilities also link to market depth. This determines, in monetary terms, how much a trading market can absorb a large buy or sell order without substantially impacting its price.

Reputable market makers ensure deep market depth, meaning substantial order books with tight spreads and reduced slippage. Otherwise, markets will suffer from wild volatility and unstable trading conditions.

Execution Speed – 25%

Execution speeds are also crucial when selecting the right market maker, especially in the crypto markets, which witness extreme price fluctuations. Market makers must have the capability to act in real-time. For example, suppose it provides XRP/USD liquidity to a centralized exchange.

An exchange trader places a substantial buy order. Without lightning-fast execution, that order could experience unfavorable slippage. This means that the exchange trader has their order filled at a much higher price than they anticipated. This could cause reputational damage to the exchange.

This risk can be avoided by choosing a market maker with a proven track record for quick execution. Clients should discuss execution speeds with their provider, including verifiable case studies.

Technological Capabilities – 20%

Advanced technological capabilities are essential when leveraging market making services. Especially when tokens trade on exchanges with millions of active clients. This translates to an unprecedented number of orders per second. This is amplified further when factoring in third-party bots.

With this in mind, crypto market makers must utilize advanced algorithmic programs with transparent pricing methods. For example, most providers prefer the time-weighted average price (TWAP) model, as it focuses on price efficiency.

The principal market making (PMM) model is increasingly being used too. This combines options and loan mechanisms to achieve the desired KPI. It’s also important that market makers offer suitable API integrations. These should offer a user-friendly experience and connect with the leading centralized and decentralized exchanges.

Pricing and Fee Structure – 20%

Pricing and fee structures can vary wildly when using market makers. We found that most providers offer quotes on a case-by-case basis. This can be determined by the project size and its requirements. require a monthly retainer. This is a fixed fee that’s chargeable irrespective of KPIs.

A performance-based fee is also likely. This could be based on minimum trading volumes or average spreads. Another aspect to consider is the treasury. This provides the market maker with an inventory of tokens, which are required to execute orders. Not only the project’s native token but potentially stablecoins too.

Customization and Flexibility – 10%

Our methodology also assessed whether the market maker offers customization and flexibility. This will be important to projects with specific needs. For example, consider a newly launched stablecoin on a layer-2 network like Base or Blast. It’s paramount that the stablecoin retains its value to the respective currency.

This means the project must set specific KPIs with a predetermined deviation range (e.g. 0.2% on either side). Similarly, projects should have the option of changing their initial strategy. After all, the crypto markets are a fast-paced industry – so flexibility is crucial to stay ahead of the curve.

How Does Crypto Market Making Work?

Crypto market making is a multi-faceted solution. It covers many requirements, ranging from order placement and liquidity provision to risk management.

Read on to learn how crypto market making works and what solutions could be suitable for your project.

1) Order Placement

One of the most commonly used services is order placement. The reason for this is simple: increased volume. This is a fundamental requirement for any project. For example, consider a newly launched token on a centralized exchange. The project has limited visibility, which translates to an average daily trading volume of just $20,000.

This can be viewed negatively by prospective traders, considering reduced volume means increased slippage. Meaning – poor order book depth and difficulties executing trades at favorable prices. Additionally, the most prominent exchanges, such as OKX and Kucoin, have minimum volume requirements when listing tokens.

Market makers can help by constantly placing buy and sell orders, subsequently increasing volumes. Not only will this assist with exchange applications, but also avoid being delisted.

2) Spread Management

Spread management is another core service provided by market makers. The spread is the difference between the bid and ask prices for a specific crypto pair.

Wide spreads can occur without market makers, creating unstable conditions and wild pricing swings. Market makers deploy buy and sell orders around the clock to bring bid and ask prices closely aligned.

3) Providing Liquidity

Most market makers double up as liquidity providers. This ensures that tokens have sufficient buy and sell orders in the market, allowing traders to seamlessly execute positions.

• For example, suppose a token has a spot price of $1.
• A trader wants to cash out their position at $1, but there isn’t enough liquidity in the market.
• This means the trader might need to accept $0.80 to force the trade through.
• As such, they’ve taken a 20% hit because of inefficient liquidity.

Market makers solve this issue by placing limit orders at various pricing levels. This concept can also apply to decentralized exchanges, which don’t use conventional order books. The market maker will deposit sufficient funds into the respective liquidity pool. The AMM model then takes care of price movements.

4) Risk Management and Hedging

Crypto market making isn’t a risk-free practice. The trading markets are unpredictable and volatility levels can be extreme. This means a significant buy or sell order can result in losses. The solution is risk management strategies like hedging.

For example, suppose the market maker is managing $2 million for Dogecoin. It places buy and sell orders at $0.10 and $0.11, respectively. It also purchases put options on Dogecoin, ensuring that losses are avoided if it suddenly drops below $0.10.

5) Adapting to Market Conditions

The best crypto market makers have developed proprietary algorithmic programs that adapt to market conditions. This is often facilitated by AI and machine learning.

This allows the market making strategy to automatically adjust based on volume, volatility, price movements, and other core metrics. This in itself is a risk mitigation strategy that can maximize efficiency while minimizing potential losses.

The Different Types of Crypto Market Makers

Understanding the different types of crypto market making can be confusing. We’ll now clear the mist by exploring the most sought-after providers.

Automated Market Makers (AMMs)

The AMM model is leveraged by decentralized exchanges like Uniswap and PancakeSwap. It enables traders to buy and sell tokens without using order books. As such, buyers don’t require an active seller when swapping tokens. Instead, the AMM model uses liquidity pools. These can be funded by anyone, including market makers and retail clients.

For example, suppose a decentralized exchange offers the SHIB/USDT pair. The AMM pool requires equal and sufficient amounts of SHIB and USDT. This ensures the pool facilitates decentralized trading with favorable slippage. Do note that AMMs are a great way to earn passive rewards. Those funding liquidity pools earn a share of trading fees.

Order Book Market Makers

Unlike AMMs, order book maker makers serve centralized exchanges. Order books are an internal part of centralized trading – they match buyers and sellers at agreed prices.

• For example, suppose a trader wants to buy 1 ETH for $2,500.
• That order will only be executed if enough sellers are looking to sell ETH at $2,500.
• Otherwise, the buyer would need to accept a higher price.

This is where market makers assist. They place buy and sell orders at various prices, ensuring that traders can easily enter and exit the market. This creates order book depth, which facilitates smooth trading conditions without unnecessary volatility.

Proprietary Trading Firms

Market making is also employed by proprietary trading firms. The objective is to generate profits rather than create stable markets for a third party. One of the most common methods is profiting from the spread.

• For example, suppose the current BTC spot price is $60,000.
• The market maker places a bid order of $59,500 on one exchange.
• On the same exchange, they place an ask order at $60,500.
• This means exchange clients can buy BTC at $59,500, or sell BTC at $60,500.
• The trading firm profits from the price difference, which is $500 on either side.

This is a low-risk approach to market making, but it requires advanced technological capabilities with rapid order execution speeds.

Proprietary Trading Firms

Event-driven market makers enter buy or sell orders based on real-world events. They speculate on how the broader markets will react to an event and enter orders accordingly. For example, suppose a Solana ETF has been approved.

The firm believes demand for SOL will increase once the ETF goes live. They place limit orders at various prices on the SOL/USDT pair. Profits will be made as the market absorbs these orders. Risk management orders are also entered, protecting the firm from unforeseen outcomes.

Conclusion

In summary, crypto market makers provide a wide range of solutions. This includes increased liquidity, improved trading volumes, and reduced slippage. These characteristics are imperative for smooth and functional markets.

However, choosing the right market maker is paramount. Consider key factors like available capital, prior case studies, technological capabilities, and partnered exchanges.

FAQs

What are market makers in crypto?

Market makers ensure crypto tokens trade in smooth and stable market conditions. Core services include liquidity provision, order book depth, and tightened spreads.

What is the difference between a market maker and a liquidity provider?

Market makers create specific market conditions by placing buy and sell orders on crypto exchanges. Liquidity providers ensure there is sufficient capital in a particular market, allowing buyers and sellers to trade seamlessly.

Who is the biggest crypto market maker?

Some of the largest crypto market makers are Cumberland, GSR Markets, and B2C2.

How much do crypto market makers earn?

Crypto market makers typically charge a monthly retainer fee, alongside performance-based commissions (e.g. based on volume). The specific revenues generated vary from one provider to the next.

Is crypto market making risky?

Crypto market making is relatively risk averse, as both sides of the market are traded. However, extreme volatility or unforeseen events can yield losses, so risk management strategies are crucial.

References

1. What is a Market Maker? (Corporate Finance Institute)
2. What Are Automated Market Makers (AMMs)? (Chainlink)
3. Liquidity Pools Explained: Simplifying DeFi for Beginners (BitPay)
4. 3 Order Types: Market, Limit, and Stop Orders (Charles Schwab)