Dynamic Market Making refers to a trading strategy employed by market makers to provide liquidity in cryptocurrency markets. Unlike traditional market makers who set fixed prices, dynamic market makers adjust their buy and sell orders based on real-time market conditions, such as price movements and trading volume.These market makers analyze various factors, including order book depth, recent trades, and market sentiments. This allows them to optimize their spreads— the difference between buying and selling prices— to remain competitive while managing their risk exposure.With algorithms and automated trading systems, dynamic market makers can respond quickly to fluctuations, either tightening their spreads in volatile conditions or widening them when the market stabilizes. This responsiveness helps maintain orderly markets and can enhance trading efficiency for participants.By providing liquidity on both sides of a trade, dynamic market making plays a vital role in reducing price volatility, enabling smoother transactions, and ensuring that buyers and sellers can execute trades without significant delays or price impacts.