What Services Do Market Makers Provide for Crypto Projects?

One of the most well-known yet often misunderstood forces in the crypto ecosystem is the market maker. Project teams, exchanges, and founders rely on crypto market making firms and their services for liquidity and trading support. Market makers are a net benefit to the crypto industry; however, many remain unclear about what market making services entail. In this article, we will explore the main services that marker makers in crypto offer for projects.

What Is Market Making in Crypto?

A market maker of cryptocurrencies is an organisation—typically a company—that uses its own assets to foster trading activities and provide liquidity for specific digital assets, along with markets and venues they are traded on. For this reason, these firms are sometimes referred to as crypto liquidity providers (LPs). If you've ever provided liquidity on a decentralised exchange (DEX) like Uniswap, you have direct experience in decentralised liquidity provisioning. Market makers do this on a much larger scale, usually for centralised exchanges (CEXs), but sometimes also for DeFi protocols. However, it's important to understand clear differences between market making and liquidity provisioning in crypto.

On a basic level, market makers operate on a crypto exchange by setting a big number of limit orders at various price points, known as bid and ask prices. They place orders on both sides of the trade: this ensures that both buy and sell orders can be executed immediately by other traders. Without market makers, crypto traders would often suffer from illiquidity and volatile price swings.

Typically, a market maker sets base prices for crypto assets based on the prices at which they trade on other exchanges and platforms. This ensures price consistency and reduces price fluctuations that lead to arbitrage.

Why Crypto Projects Work with Market Makers?

For new and developing crypto projects, working with crypto market making companies is vital. Having liquidity means users and investors can easily buy or sell the project's tokens, increasing trust and interest. Thus, by engaging with market makers on crypto exchanges, maintain healthy trading volumes and reduce slippage.

Markets frequently run the risk of price manipulation in the absence of cryptocurrency market makers due to low liquidity. In particular, malefactors exploit this lack of liquidity to orchestrate pump-and-dump schemes. Market makers of crypto help counteract such practices by providing consistent liquidity and stabilising price movements.

Let's take a look at a probable roadmap of a cryptocurrency token, comparing the journey with and without the involvement of a market maker.

Token Mortality Statistics: Why Blockchain Projects Fail

According to CoinGecko, over 50% of cryptocurrencies listed on CoinGecko since 2021 are considered ‘dead’, meaning they are no longer traded, having completely lost liquidity and community activity.

Token Failures by Year:

• 2021: 428,383 tokens
• 2022: 213,075 tokens
• 2023: 245,049 tokens
• 2024: 1,382,010 tokens
• 2025 (as of April 30): 1,821,549 tokens

The years 2024 and 2025 have seen record numbers of token closures, accounting for over 87% of all failures since 2021.

There are several reasons contributing to the high mortality rate of tokens. One of the primary causes is the ease of token creation, as platforms known as launchpads allow anyone to generate a cryptocurrency without technical knowledge. This has led to an influx of low-quality assets, specifically memecoins. Launchpads Pump.fun and SunPump popularised this practice in Solana and TRON, while GraFun has been the biggest app for launching tokens in BNB Chain. 2025 has seen the rise of new launchpads’ popularity in Solana. 

Another significant factor is the lack of real utility. Many crypto assets are launched without clear use cases or value propositions, resulting in their failure once initial interest fades. In addition, lack of community support is a common issue. Tokens without active development or engaged communities often become inactive, ultimately leading to their demise. Finally, market volatility is another contributing factor. Economic shifts and the inherent instability of the crypto market further exacerbate the situation, pushing many tokens into failure.

These factors highlight the critical role of effective market making services in a new cryptocurrency's survival.

To better understand the scope of services a market maker provides in the Web3 space, let's take a look at a specific example.

Market Making of Crypto in Action: The Example of DWF Labs

DWF Labs is one of the biggest market makers of cryptocurrencies, operating on over 60 exchanges, offering partners and portfolio companies services they need to thrive in the competitive crypto market. As a leading crypto market maker company, we offer on-demand market making, providing deep liquidity and advanced crypto market making strategies to engage traders and organically boost trading activity, ultimately increasing investor confidence.

Unlike the common myth, market makers of crypto do not affect or manipulate prices—that is determined by the actual market activity, sentiment and other factors. On the contrary, a market making strategy for crypto by DWF Labs focuses on creating stable and predictable trading environments, minimising price manipulation risks, and helping blockchain projects navigate volatile markets.

However, we go beyond just market making for cryptocurrencies. At DWF Labs, we act as both a market maker and a multi-stage investor. We support projects long after the initial deal with liquidity provisioning solutions, advisory support, go-to-market strategies, tokenomics design, exchange listings, and operational scaling. This is what we call the ecosystem-wide support for our portfolio companies.

Here are some of the services beyond market making that DWF Labs offer to crypto projects, acting not as a passive capital provider but as an ecosystem builder:

• Introductions to the top crypto exchanges worldwide, spanning both centralised and decentralised venues.
• Connections with over 750 portfolio companies to support collaboration and growth opportunities.
• Access to hundreds of global media outlets to help projects grow their presence.
• Grants, validator nodes, and hackathons, as well as ongoing support during challenging periods.
• Collaboration with universities and public institutions to help shape the future of Web3 infrastructure and promote broader adoption.
• Tokenomics guidance, go-to-market strategy (GTM) and incubation services.
• Advisory support, including marketing consultancy, audience intelligence reports, and legal and HR advice, for selected new projects.

Finally, we are committed to transparency, providing regular updates on our activities so that projects can depend on us as a trusted partner. With over 750 companies in our portfolio, DWF Labs has established itself as a reliable market maker and liquidity provider for top-tier crypto projects across the globe.

Conclusion

Market makers of crypto play a vital role in the ecosystem, offering a wide range of services that go beyond simple liquidity provision. They assist in setting up a well-planned listing strategy and offer vital support during negotiations with exchanges and other market participants. This accelerates the token’s availability on platforms, providing faster access to potential buyers and investors.

Additionally, market makers of digital assets such as DWF Labs help with operations, offering expertise in marketing, HR, legal and other areas. They help build and engage with the community, ultimately improving the project's visibility on the market.

With these extensive services, crypto market makers play a critical role in minimising risks, improving token resilience, and optimising crypto project’s economic success. Thus, leveraging the services of a professional crypto market maker is essential for any project aiming to thrive in today’s competitive market.