From the 2022 Crisis to the 2024 Bull Run: How Market Making Evolved from Survival to Innovation - Seals Global Insights

The dramatic transformation of the cryptocurrency market in recent years tells a compelling story of resilience and innovation. Daily trading volume has grown from $10 billion to $100 billion, but the raw numbers only scratch the surface. What emerged wasn’t just a recovery – it was a complete restructuring of market making.

The Evolution of Market Making

The market meltdown wiped out 40% of market makers, forcing the survivors to revolutionize their approach. Traditional 0.1% spreads widened to 1-2% as liquidity evaporated. Delta-neutral strategies, previously used by only 15% of market makers, became the industry standard as the landscape evolved.

“The traditional playbook stopped working when volatility for major tokens reached 95%,” explains CLS Global CEO Philip Veselov. “Market makers needed new solutions to unprecedented challenges.”

The retail revolution

Then came an unexpected catalyst: meme coins. What started as a crypto curiosity became a force that revolutionized market-making strategies. Traditional approaches designed for institutional trading could not cope with the unique challenges of community-driven tokens.

Market makers that used to process 100,000 orders per day now handle millions. Advanced algorithms reduced average slippage on major exchanges from 2.5% to 0.3%. The meme coin explosion further tested these systems, with daily volatility averaging 150%, requiring innovative risk management approaches.

Case Study: How Virtual Went from $28 Million to $1.68 Billion

The transformation of market making strategies is perfectly illustrated by CLS Global’s work with Virtuals Protocol (VIRTUAL), an AI-powered metaverse project that experienced phenomenal growth in late 2024. VIRTUAL approached CLS Global in September 2024. The challenge wasn’t just providing liquidity – it was preparing for explosive growth while maintaining market stability.

“Traditional market making approaches would not work for a token experiencing such rapid growth,” notes Philip Veselov. “We needed to implement dynamic systems that could handle volume increases and maintain tight spreads during periods of extreme volatility.”

The results speak for themselves. VIRTUAL expanded to major exchanges including Bybit, KuCoin, and Bitget. Despite this explosive growth, advanced market making algorithms maintained market stability even as the token price surged 6,700%, reaching an ATH of $2.31 and helping VIRTUAL rank #61 by market cap at $1.68 billion.

Beyond Traditional Market Making: An Evolution to Comprehensive Digital Asset Services

Modern crypto markets need more than just liquidity providers – they need comprehensive partners who understand both traditional finance and the unique dynamics of crypto. CLS Global recognized this shift early on, expanding into full-service digital asset solutions by increasing its project partnerships by 70% by 2024.

The company is rapidly expanding its team and capabilities, particularly focusing on bringing traditional businesses into the crypto space through comprehensive token launch support services. This transformation reflects CLS Global’s commitment to bridging the gap between traditional finance and digital assets.

Key services now include:

Development of a comprehensive legal framework for traditional firms entering crypto

End-to-end listing support on top 10 exchanges

Advanced trading infrastructure implementation

Strategic partnership consulting

Full-spectrum digital asset services

The future of market making

As daily volume approaches $200 billion, sophisticated market infrastructure is becoming increasingly important. CLS Global’s evolution into a comprehensive digital asset solutions provider reflects this new reality. The company continues to expand its capabilities in several key areas:

Strategic growth initiatives

Building relationships with over 60 VC funds/advisors

Developing a comprehensive technical and business roadmap

Establishing strong partnerships with major exchanges (Binance, Kucoin, Huobi, MEXC)

Enhancing marketing capabilities and partnerships

Digital asset solutions

Project valuation and analysis

Primary and secondary listing management

Strategic roadshow organization and execution

Full legal setup for traditional firms entering crypto

Comprehensive token launch support

Conclusion

The transformation of market making represents more than just a reshuffle - it is a complete reimagining of how digital assets are traded and managed. As CLS Global continues its evolution into a comprehensive digital asset solutions provider, it is poised to guide both crypto-native and traditional projects through the next stages of their development.

Looking ahead, the focus is on building a robust infrastructure that can support the next generation of digital asset trading while providing broad support for projects entering the space. With its expanding team and growing capabilities, CLS Global is poised to lead this evolution, serving as a bridge between traditional finance and the future of digital assets.