In the evolving, competitive world of cryptocurrencies, the success of your project depends on many factors. One of the key ones is the liquidity of tokens, so market-making is a priority for any successful cryptocurrency project.
Market-making ensures trading volume on a cryptocurrency exchange, essential for maintaining healthy liquidity.
Liquidity is the ability of an asset to be bought or sold on the market without significantly affecting its price. High liquidity attracts investors as they can enter and exit positions without loss. Market makers reduce the amplitude of price fluctuations by offering to buy or sell an asset at current prices, which makes the market less volatile.
Projects with high token liquidity are perceived as more reliable and attractive to investors. Market-making confirms the project team's care for its investors and traders and its desire to provide them with the best trading experience. This quality signal is significant for new projects seeking to establish their presence in the market.
Market makers help increase overall trading volume, which can attract additional traders to the platform. A more active market provides reliable price information and makes it more attractive to new participants, including institutional investors.
Cryptocurrency exchanges often rank tokens based on their trading activity. High liquidity and trading volume can increase your token's visibility on these platforms, leading to more users and increased trading activity. It creates a positive cycle that will further strengthen your project's position in the market.
Market making eliminates the risks of delisting from cryptocurrency exchanges.
Cryptocurrency integrators like Coingecko and Coinmarketcap are often the starting point for investors, funds, traders, and exchanges who evaluate projects for investment and cooperation. Integrators show the chart, spreads, liquidity, and trading volumes — and market-making will distinguish your project from competing ones.
It is important to understand that large and popular projects also use the services of market makers.
Market-making will not work miracles or raise the token's price to the Moon. You will have to work and develop the project to support the bidding picture that the program paints.
We want every small project to be able to show active trading on the exchange, attract traders, and realize its goals. That's why MarketMakingApp offers a free, open-source tool to every project owner.