Crypto Market Making as a Side Strategy: What Reddit…
By Damilola Esebame
AI summary of the source article
Retail liquidity providers deposited over $45 billion into automated market makers by early 2026, but research shows nearly half lost money on Uniswap v3 due to impermanent loss and competition from professional algorithmic firms.
Key facts
- Over $45 billion was deposited into automated market maker protocols by early 2026, according to DeFiLlama.
- A Bancor and Topaze Blue study found 49.5% of Uniswap v3 liquidity providers had net negative returns after accounting for impermanent loss.
- Professional market making firm Wintermute processes approximately $2.24 billion in daily trading volume.
Source excerpt · FinanceFeeds
KEY TAKEAWAYS Retail liquidity providers deposited over $45 billion into automated market maker protocols by early 2026, according to data tracked by DeFiLlama analytics. A 2021 Bancor and Topaze Blue study found that 49.5% of Uniswap v3 liquidity providers recorded net negative returns after accounting for impermanent loss during the protocol’s initial months. Professional firms like Wintermute p…