A maker in crypto is the foundation of liquidity: a complete analysis of market makers in 2025

In crypto, a maker is not just a trader placing orders — it’s a fundamental component of a healthy trading ecosystem. In fact, market makers form the invisible backbone supporting the entire cryptocurrency trading system, enabling instant execution of trades for millions of users worldwide. Without them, the modern crypto market would be almost unrecognizable.

Who is a crypto maker: definition of a market maker and its key role

When we say that a maker in crypto is a specialist, we mean a company or trader who constantly posts two-sided orders to buy and sell simultaneously. Its main function is to create a “market” around an asset, allowing other participants to trade without needing to find a counterparty.

Imagine this: you want to buy Bitcoin right now. Without market makers, you’d have to wait until a seller willing to sell at a reasonable price appears. With market makers, all the necessary liquidity already exists in the order book, waiting for you.

Specialized firms, large financial institutions, and hedge funds make up the majority of professional market makers. However, this does not exclude retail traders who place limit orders and contribute modestly but significantly to overall market liquidity. Unlike regular speculators seeking maximum profit from price movements, market makers earn on the spread—the difference between buy and sell prices—often just a few dollars per trade.

How market makers work: how algorithmic trading provides liquidity

The process of market making is based on precise calculations and rapid responses to market changes. When a market maker sees an opportunity, it simultaneously posts a buy order and a sell order for the same asset at nearby prices.

For example, a market maker might place a buy order for BTC at $67,400 (below the current price of around $67,420) and a sell order at $67,440 (above the current price). The $40 difference between these levels is its potential profit margin. If both orders execute, it earns exactly $40 on that transaction. Sounds modest? But when thousands of such trades happen daily, modest becomes substantial.

Modern market makers use advanced algorithms and high-frequency trading (HFT) systems that execute thousands of operations per second. These algorithms analyze order book depth, monitor volatility, track order flow, and instantly adjust order prices. The system must be flexible: when volatility increases, the algorithm widens the spread to compensate for risk; when the market is calm, the spread narrows.

Inventory management is another critical aspect. Market makers need to hold significant amounts of cryptocurrencies ready for trading. If they buy too much BTC, they risk losses if the price drops. Therefore, they constantly hedge their positions across other exchanges or market segments, spreading risk and optimizing capital returns.

Market maker vs. market taker: how both sides stabilize the market

While market makers often get most of the attention, market takers play an equally important role in creating a functional trading environment. The difference between them is fundamental.

A market maker posts an order and waits for someone else to accept it — a passive role in terms of execution timing. A market taker, on the other hand, immediately accepts an existing order, executing the trade at that moment. If a market maker posts a sell order for BTC at $67,440, a market taker is the person or algorithm who says “I agree, I’ll buy at this price right now.”

Interaction between them creates a symbiosis. Market makers ensure a constant presence of prices and volumes, giving takers the opportunity to trade anytime. Market takers generate trading activity, allowing makers to profit from the spread. The “maker-taker” system works efficiently only when both sides are present in significant volume.

On a well-functioning market, this dynamic results in narrow spreads, deep order books, and low costs for all participants. Disruption of this balance—such as too few makers—leads to wider spreads, low liquidity, and difficulty executing large orders.

Leading crypto market makers: Wintermute, GSR, Keyrock, and other players

As of 2025, a clear hierarchy of leading companies dominates the market-making segment. These organizations manage huge capital volumes and operate on dozens of crypto exchanges simultaneously.

Wintermute is one of the most powerful players. The algorithmic trading firm manages approximately $237 million across more than 300 assets on over 30 blockchains. Wintermute provides liquidity on more than 50 crypto exchanges, demonstrating a cumulative trading volume reaching trillions of dollars. Its advantage lies in advanced trading strategies and broad coverage of both centralized and decentralized platforms. Downsides include high competition and less focus on small or experimental tokens.

GSR has a long history—over a decade in crypto markets. The company specializes not only in market making but also OTC trading and derivatives. Over its existence, GSR has invested in more than 100 projects and protocols. It services clients on over 60 exchanges, positioning itself as a full-service liquidity provider. Its focus on large projects and institutional clients means smaller startups might find working with GSR too costly.

Keyrock stands out with its scale—handling over 550,000 trades daily across more than 1,300 markets and 85 exchanges. Founded in 2017, Keyrock offers comprehensive solutions: from market creation to OTC trading, options desks, and liquidity pool management. Its strength is data-driven and tailored solutions for different regulatory environments. Its weakness is less brand recognition compared to industry giants.

DWF Labs presents an interesting hybrid approach, combining investments in projects with market making. The firm supports a portfolio of over 700 projects, including more than 20% of the top 100 projects on CoinMarketCap and 35% of the top 1000. This makes DWF Labs a key player for early-stage projects, although it mainly works with Tier 1 projects.

Amber Group and other firms fill remaining niches, each with their own specialties and advantages. All these companies leverage machine learning, deep data analytics, and cutting-edge technology to optimize their operations.

Why market makers are critical for crypto exchange development

Crypto exchanges depend entirely on market makers to operate. Their role is indispensable and offers several concrete benefits.

Liquidity as the foundation. Without continuous presence of market makers, the order book would be empty or extremely sparse. Trying to buy 10 BTC on an illiquid market could cause the price to slide by 5-10% or more. Market makers provide sufficient depth to execute large trades smoothly.

Price stability amid volatility. Crypto markets are known for their instability, especially for altcoins with low trading volume. Market makers act as stabilizers. During panic sell-offs, they place buy orders to support the price from collapsing. During euphoric rallies, they place sell orders to prevent excessive spikes. This buffering role is critical for maintaining market health.

Efficient price discovery. Market makers help the market find the true fair value of assets. Their continuous quotes reflect the real balance of supply and demand. This makes prices more informative and less susceptible to manipulation.

Attracting traders and increasing commissions. Liquid markets with tight spreads attract retail and institutional traders. More traders mean more trades, leading to higher exchange revenue from commissions. Thus, market makers indirectly help exchanges grow their income.

Supporting new asset listings. When a new token is listed, it needs initial liquidity to attract early traders. Market makers provide this vital liquidity, often under special terms negotiated with the project. Without it, a new listing might remain dormant.

Main risks for market makers: volatility, technological, and regulatory challenges

Despite the attractive profit profile, working as a market maker involves dangers and unforeseen challenges.

Market volatility risk. Unexpected price shocks can cause catastrophic losses. Imagine a market maker holding 100 BTC, posting orders to provide liquidity. Suddenly, negative news hits, and the market drops 15%. If the maker doesn’t quickly cancel its orders, it could lose millions in minutes. The system must be prepared for such shocks, but no algorithm is perfect.

Inventory risk. Market makers hold large crypto positions as buffers. If the value of these assets drops sharply, losses can be huge. This is especially risky in low-liquidity markets, where a single large trade can move the price by 20-30%.

Technological risks. High-frequency trading algorithms and systems are a double-edged sword. They enable processing large volumes but also create vulnerabilities to technical failures. A millisecond delay can lead to orders being executed at undesirable prices. Cyberattacks on market maker systems can have disastrous consequences.

Regulatory risks. The legal landscape for cryptocurrencies is unstable and varies across jurisdictions. In some regions, market making might be considered market manipulation, leading to legal action and fines. Market makers operating internationally must comply with numerous regulations, significantly increasing operational costs.

Competition and margin pressure. As more firms enter the market-making space, spreads narrow, and profit per trade decreases. To stay profitable, market makers must continuously improve algorithms and scale volumes.

Conclusion: the future of market makers in the crypto ecosystem

A crypto maker is not just a profit-seeking entity — it’s a critical infrastructure component that makes crypto markets functional and accessible. Without market makers, the crypto ecosystem would be far less efficient, with wide spreads, high volatility, and limited access for retail investors.

As the crypto space evolves, the role of market makers will become even more vital. Their presence on emerging blockchains, DeFi protocols, and new trading pairs will influence the pace of adoption of these technologies. However, they will also need to cope with increasing volatility, tightening regulations, and technical challenges.

Understanding that a crypto maker is an integral part of the ecosystem helps traders and investors better navigate the market. They should appreciate the role market makers play in enabling seamless trading, often behind the scenes of cryptocurrency markets.