Market makers play a critical role in ensuring the liquidity and stability of financial markets. By constantly quoting buy and sell prices, they reduce price volatility and make it easier for traders to enter or exit positions without causing significant price changes. Market makers are particularly important in markets that experience low volume or high volatility, as they help maintain orderly trading. In the cryptocurrency space, market makers ensure that there is enough liquidity for assets that are not frequently traded, enabling smoother transactions and reducing the cost of trading.