Forgd AcademyForgd Academy
Lesson 9 of 90

Why is market making an essential service in crypto?

Market making is foundational to functional secondary markets. Newly issued tokens rarely have organic liquidity because there is insufficient expected value for unaffiliated traders to provide patient bids and offers. Market makers step into this gap by deploying capital, inventory, and infrastructure to facilitate price discovery, reduce volatility, and enable continuous trading. Without market making, token markets tend to exhibit extreme spreads, shallow depth, and reflexive downside moves.

Ready to start?

Contact us for a 1:1 consultation regarding all things Web3 advisory

Apply for Full-Service Advisory

© 2026 Forgd. All rights reserved. Terms & Conditions

The content on this site is for informational purposes only and should not be construed as financial or legal advice.