Crypto Liquidity Providers: Who Makes the Crypto Market?

The recent two years are fantastic years for all crypto coins. Following the spectacular performance​ throughout 2020, the global crypto investing activities have exploded in 2021, causing the world’s crypto market cap to repeatedly hit record highs. 

Statistics showed that the combined value of all cryptocurrencies skyrocketed by 220% in the past year, while 2021 saw an even more impressive surge with multiple major coins reaching their all-time highs.

In 2021 only, the price of Bitcoin, the largest cryptocurrency accounting for 45% of the global crypto market cap, rallied more than 100%, boosting its market cap to $1.1 trillion at one point compared to $178 billion in the previous year. Additionally, the market cap of another major crypto coin — Ethereum — soared by around 400% to $411.1 billion this May from $82.8 billion in January, with transactions per day floating nearly 1.1 million during a certain period of time.

All the metrics reveal a fact that the crypto industry is a sea of opportunities waiting for businesses from various sectors to explore and benefit from.

The existing market participants, including liquidity providers (LPs), trading platforms, payment companies, etc., are obviously unable to meet the considerable demand for cryptocurrency trading​, considering the unprecedented growth rate of the market. One example for this is the liquidity provider.

Fazzaco has recently conducted a survey on 50 LPs, which showed that only 28% of them offer crypto liquidity, with varying scope of offerings. Many internationally renowned liquidity providers, such as Equiti Capital and Sucden Financial, still stay away from the crypto world. The 14 providers of cryptocurrency liquidity are:

Specifically, B2Broker, an award-winning provider of liquidity and technology solutions for the crypto and FX industry, offers the broadest range of crypto liquidity, covering a total of around 100 cryptocurrency pairs. Broctagon Fintech Group, a multi-asset liquidity provider, comes in at the second spot followed by Match-Prime, with access to liquidity for the 23 and 12 most popular cryptocurrency pairs respectively. FXDD, Markets Direct, and SAXO Bank offer connections to the liquidity of a minimum amount of crypto assets. Their prime broker services include only 3 cryptocurrency pairs.

According to the survey, all the 14 LPs providing cryptocurrency liquidity have covered Bitcoin, Ethereum, and Litecoin, 3 of the most tradable cryptocurrencies. 10 of them have enabled access to Ripple, the 6th biggest coin with a market cap of $29.6 billion as of press time. 

However, only one has already expanded its offerings to include Dogecoin, the new favorite of crypto enthusiasts having increased more than 6,000% this year. Additionally, Tether, the No. 3 most valuable cryptocurrency on the market according to CoinMarketCap, seems also to be neglected by most LPs.

As concluded in a prior article by Fazzaco, brokers have taken the lead in sailing into the lucrative crypto market. In the past 3 months only, brokers claiming / planning to start / expand cryptocurrency businesses include Saxo Markets, Interactive Brokers, Dukascopy and eToro, to name a few.

Compared to brokers, liquidity providers seem to act far less swiftly. Well, as the immense demand has arisen, we believe more liquidity firms will move ahead to cut a slice of the increasingly larger crypto cake.

Fazzaco focuses on deep-live research and in-depth analysis on the forex and cryptocurrency markets, in addition to up-to-minute industry news. Also, our Companies section features the world’s major liquidity providers, brokers, fintechs and more, that make up the main part of the foreign exchange and cryptocurrency ecosystems. Industry firms seeking to improve solutions visibility and accelerate growth can create or claim your company pages at Fazzaco, where you can release your latest solutions to thousands of potential partners worldwide.