A Year After FTX, Crypto Market Makers Adapt to Survive
- Volumes are still down 50%, despite slight recovery in October
- Some firms are reducing exposure, others are diversifying
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Almost one year after the collapse of Alameda Research, the trading firm at the heart of Sam Bankman-Fried’s failed cryptocurrency empire, market making in digital assets is still struggling to make a significant comeback.
While trading volumes were boosted by a rally last week that saw Bitcoin jump nearly 16%, they still have a long way to go before recovering to their pre-crypto winter days. Volumes were up this month for the first time since June, but are down 50% from the days prior to the bankruptcy of Bankman-Fried’s exchange FTX in November 2022, according to CCData.