Market makers in the cryptocurrency market play a crucial role in enhancing liquidity and price stability. By continuously providing both buy and sell quotes, they ensure there are always counterparties for trades, reducing the time and cost for investors to execute transactions. This constant presence of bids and asks also helps smooth out price fluctuations. When there’s excessive buying or selling pressure, market makers step in, buying when prices drop sharply and selling when they spike, preventing extreme price swings and contributing to a more stable trading environment.