Author: Ai Yi (X:
@ai_9684_xtpa
)
Related Reading:
“Understanding Market Makers: Predators in the Gray Area, Why They Are Vital to the Crypto World?”
Editor’s Note: Market makers are a crucial part of the crypto world, providing liquidity to the market while wielding the “life and death” power over coin prices. Crypto KOL Ai Yi analyzes the market-making activities of seven major market makers in this bull market cycle, focusing on aspects such as capitalization, position changes, and market-making styles. The following is a summary compiled by Odaily Star Planet Daily:
After being delayed for half a year, the assignment has finally arrived.
Summary of market-making activities of seven major market makers in this bull market cycle: Jump Trading / Wintermute / Amber Group / DWF Labs / B2C 2 / GSR Markets / Flow Traders.
Wintermute: 100% Participation Rate by the Big Four
DWF Labs Makes High-Profile Entry into Meme Sector and TON Ecosystem
Increased Activity from Amber and Flow Traders
Preface
As usual, for enhanced data accuracy, only publicly verifiable sections of market-making projects from the images were selected. Feel free to supplement any omissions in the comments.
Capitalization of Market Makers
As of 2024-06-27, sorted by on-chain capitalization from highest to lowest:
1. Jump Trading: $673 million USD
2. Wintermute: $475 million USD
3. GSR Markets: $86 million USD
4. Amber Group: $50 million USD
5. DWF Labs: $41 million USD
6. B2C 2: $37 million USD
7. Flow Traders: $3.9 million USD
Below are some key points:
Wintermute: 100% Participation Rate by the Big Four
In this bull market cycle, almost all high-market-cap tokens have involvement from Wintermute. Among the Big Four (OP / ARB / STRK / ZK), except for ZK which lacks clear data support, Wintermute has participated in market-making with significant token volumes.
Additionally, Wintermute has become the second-largest market maker for Robinhood, with trading revenue accounting for as much as 10%.
Over the past six months, Wintermute’s large holdings have shown two significant changes:
1. In November 2023, the holding of $ARB, ranked TOP1, sharply decreased (from $39.73 million to $2.57 million). Correspondingly, there should frequently be news of ARB replenishment into exchanges.
2. As a market maker for ENA, Wintermute holds related tokens worth $16.29 million ($10.01 million USDE + $6.28 million ENA).
GSR Markets
Rumored as “Binance’s designated market maker,” their recent involvement in Launchpool projects is indeed substantial. It should be noted that the asset $WLD, previously ranked TOP 1 in GSR’s holdings, has decreased by nearly 87% (from $13.06 million to $1.66 million). In its place is $GALA, with GSR still holding tokens worth $9.88 million, which has remained largely unchanged for half a year.
DWF Labs: High-Profile Entry into Meme Sector and TON Ecosystem
DWF Labs has undoubtedly been the most active market maker in this bull market. In early February, it drove the rapid rise of various meme coins such as FET / JASMY, and in May, it announced investments in projects like FLOKI / TOKEN / GME during the meme explosion, while deeply participating in the TON ecosystem.
Truly not missing out on any hotspots, running the “VC + MM” model with great success.
Amber Group and Flow Traders
These two market makers may not have the same level of fame as the aforementioned three, but they have also been highly active in recent months. Particularly Amber, participating in narratives such as liquidity staking / L2 / interoperability protocols. Currently, Amber holds $12.74 million worth of ZRO, while Flow Traders’ top holdings include BTC / ETH and DeFi tokens UNI / MKR from the previous bull market cycle.
Specific Holdings of Other Market Makers
The capitalization of most market makers has shown significant growth. Apart from factors such as “exchange funds flowing to the chain,” the bullish market in the first half of the year has indeed allowed market makers to earn money. For example, GSR publicly stated that “revenue in the first half of the year grew more than twice compared to last year.”
For those interested in holdings, please refer to the Arkham dashboard, as details are not expanded here:
https://platform.arkhamintelligence.com/dashboards/view?dashboardID=77ad9d95-8d52-4958-a6ab-1c807db155f2
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