high-frequency trading (HFT) significantly influences cryptocurrency market liquidity. Positively, HFT enhances liquidity by executing rapid, large-volume trades, enabling easier transactions at fair prices. Its algorithms quickly seize market opportunities, reducing volatility and stabilizing prices, while participants add market depth, boosting liquidity reserves. Negatively, HFT may introduce risks like market manipulation and unfair competition, especially in the less-regulated crypto space. Thus, its impact is dual: it improves liquidity but poses potential threats. Regulatory oversight is crucial to balance these effects, ensuring market fairness and stability as HFT evolves in the cryptocurrency ecosystem. Close monitoring by regulators and participants will be key to mitigating risks while maximizing liquidity benefits.