Who is driving the crypto market: understanding the largest market makers in cryptocurrencies

Imagine a scenario: you want to urgently buy Bitcoin for $87.42K, but there’s no one on the market willing to sell. The price will skyrocket, and you will miss the opportunity. This is where market makers come in — the unseen architects of cryptocurrency trading who ensure a continuous flow of buyers and sellers.

The Largest Market Makers in Cryptocurrencies: Who They Are and What They Do

As of 2025, several leading players dominate the market-making space, shaping the health and stability of crypto ecosystems. These firms — Wintermute, GSR, DWF Labs, Amber Group, and Keyrock — utilize advanced algorithms and deep market knowledge to manage liquidity across hundreds of crypto platforms.

Wintermute: Leader in Algorithmic Trading

Wintermute holds a leading position among the largest crypto market makers thanks to its impressive scale of operations. As of February 2025, this firm managed assets totaling approximately $237 million, spread across more than 300 on-chain assets on 30+ blockchains.

Wintermute’s total trading volume reached nearly $6 trillion as of November 2024, reflecting its extensive presence on over 50 crypto exchanges worldwide — both centralized and decentralized.

What attracts projects to Wintermute:

• Coverage on both CEX and DEX platforms
• Use of sophisticated algorithmic strategies
• Proven reputation and stability in the industry

Limitations:

• May pay less attention to small or niche tokens
• Competition from other major players reduces its exclusivity

GSR: Veteran in the Crypto Market with Diversified Services

GSR has been operating in the crypto industry for over ten years, offering a comprehensive suite of services: market-making, OTC trading (, and derivatives trading. This company is chosen by token issuers, institutional investors, miners, and leading trading venues.

By February 2025, GSR had invested in a portfolio including over 100 top companies and protocols in the Web3 ecosystem. The firm provides liquidity on 60+ crypto exchanges, making it one of the most reliable crypto market makers for token launches.

Strengths:

• Deep liquidity across multiple platforms
• Long-standing presence and industry connections
• Specialization in liquidity management during launches

Weaknesses:

• Prioritizes large projects and institutional clients
• High service costs for small projects

) Keyrock: Precision in Algorithmic Trading

Founded in 2017, Keyrock executes over 550,000 trades daily across more than 1,300 markets on 85 exchanges. This makes it one of the most active market-making firms by transaction volume.

Keyrock offers a range of services: market creation, OTC trading, options desk, treasury solutions, and liquidity pool management. The company is known for its data-driven approach to optimizing liquidity.

Advantages:

• High-frequency execution with optimized algorithms
• Customized solutions for different regulatory jurisdictions
• Access to deep liquidity through multiple platforms

Challenges:

• Limited resources compared to industry giants
• Less well-known than Wintermute and GSR

DWF Labs: Focus on Portfolio Projects

DWF Labs manages a portfolio of over 700 projects, supporting more than 20% of the top-100 projects on CoinMarketCap and over 35% of the top-1000. This investment and market-making firm operates on 60+ leading crypto exchanges, trading spot assets and derivatives.

DWF Labs stands out with its investment-oriented approach to market-making, often investing in early-stage projects alongside providing liquidity.

Pros:

• Extensive network support through project portfolio
• Competitive OTC solutions
• Willingness to invest in early-stage projects

Cons:

• Works only with Tier 1 projects and exchanges
• Strict evaluation and selection criteria

Amber Group: Managing Capital in the Billions

Amber Group manages trading capital of around $1.5 billion for over 2,000 institutional clients. Its total trading volume exceeds $1 trillion as of February 2025, making it one of the largest crypto market makers by total assets.

Amber Group is known for using AI tools focused on compliance and a strong emphasis on risk management across various digital asset markets.

Strengths:

• AI-based services for trading optimization
• Comprehensive suite of financial services
• High standards of risk management

Weaknesses:

• High barriers to entry
• Diversification of services may mean less specialization in market-making

How Market Making Works: Behind the Scenes

A market maker acts as a continuous liquidity provider, placing simultaneous buy and sell orders at different price levels. The process looks like this:

1. Placing bid and ask orders: The market maker posts a buy order for Bitcoin at $87,400 and a sell order at $87,420, creating a $20 spread.

2. Earning from the spread: When a buyer purchases at $87,420 and a seller sells at $87,400, the market maker earns the difference. Over thousands of trades, this accumulates into steady income.

3. Dynamic adjustment: Using high-frequency trading algorithms, the market maker constantly repositions orders based on volatility, liquidity depth, and order flow to optimize spreads.

4. Inventory risk management: Market makers hold large crypto inventories and hedge positions across multiple exchanges to minimize the impact of sharp price movements.

Market Maker vs. Market Taker: Two Trading Roles

These two roles shape the dynamics of the crypto market:

Market Makers add liquidity through limit orders that remain in the order book awaiting a counterparty. They profit from the spread but assume the risk of adverse price movements.

Market Takers execute trades immediately at the current market price, removing existing liquidity. They pay the spread but get instant execution.

This interaction creates a balance: market makers provide depth to the order book, while market takers generate activity and match these orders. A well-balanced system reduces costs for all market participants.

Why Market Makers Are Critical for Exchanges and Traders

Without market makers, crypto trading would be chaotic. Here’s why they are indispensable:

1. Increasing Liquidity

Constant placement of buy and sell orders ensures order book depth, enabling large trades without sharp price swings. Attempting to buy 10 BTC on an illiquid market can spike the price; market makers prevent this.

2. Reducing Volatility

Crypto markets are known for volatility, but market makers stabilize prices by dynamically adjusting spreads. During crashes, they provide buy-side support; during rallies, they curb excessive spikes through active supply.

3. Narrowing Spreads

Tight spreads between bid and ask prices reduce traders’ costs and make trading more economical. Market makers compete for better prices, leading to tighter spreads over time.

4. Increasing Exchange Revenues

Liquid markets attract more traders. More trades = higher commissions for exchanges. Exchanges often collaborate with market makers to support new listings, providing instant liquidity for newly launched tokens.

Risks Faced by Market Makers

Despite the benefits, market makers navigate significant risks:

Market Volatility: Rapid price movements can turn positions against market makers. Holding large inventories and market moves wrong can lead to substantial losses.

Inventory Risks: Market makers hold large volumes of cryptocurrencies. If assets sharply decline in value, they can incur huge losses, especially on illiquid markets.

Technological Dangers: System failures, algorithm errors, or cyberattacks can disrupt trading operations and cause losses. Latency issues are especially dangerous in fast-moving markets where orders are executed at unfavorable prices.

Regulatory Uncertainty: Cryptocurrency regulation varies and can change at any moment. In some jurisdictions, market making may be classified as market manipulation, leading to legal consequences. Compliance costs increase for firms operating across multiple global markets.

Conclusion: Market Makers as Pillars of the Crypto Market

Market makers are the architects behind most of the crypto transactions you make. The largest crypto market makers — Wintermute, GSR, DWF Labs, Amber Group, and Keyrock — leverage technology and expertise to provide liquidity that drives the market.

Without their constant presence and investment in advanced trading systems, crypto markets would be illiquid, volatile, and inaccessible. Their role in maintaining market efficiency and attracting traders is invaluable.

However, they also face growing risks: technological challenges, regulatory uncertainty, and market volatility. As crypto trading evolves, market makers will remain key players in shaping a more mature, stable, and accessible digital asset market for all participants — retail and institutional investors.