# On-Chain Market Making Professionalizes

On-chain liquidity provision keeps shifting from undifferentiated passive pools to professional quoting firms that can price and decline flow, lowering trader costs while compressing returns to passive depositors and concentrating market making in fewer hands.

- Conviction: 24 / 100 (weakening)
- 7-day move: -10
- Horizon: Emerging (watchlist)
- Tracking since: 2026-10-02T00:00:00.000Z
- Last updated: 2026-10-12T14:07:13.213Z
- Canonical: https://polylog.news/crypto/trends/amm-liquidity-professionalizes
- Publisher: Polylog
- Affected regions: Global

## Recent score history

- 2026-10-11: 26
- 2026-10-12: 24

## Recent evidence

- [confirms] Ethereum researchers price the cost of censorship under multiple proposers and warn of orphaned bytecode in state redesign (2026-10-08): A third Ethereum Research post works out how proprietary market-maker pools would run on Ethereum. That points toward professional quoting firms that can price and decline flow, replacing passive AMM pools.
- [confirms] Research Finds Professional Market-Maker Pools Cut Solana Trading Costs While Passive Liquidity Providers Lose Ground (2026-10-02): A September preprint finds proprietary market-maker automated market makers delivered cheaper SOL/USDC execution than public pools in quiet markets, while returns to passive public-pool depositors require separate accounting. Peer-style empirical evidence that professional quoting lowers trader costs while leaving passive depositor returns unproven is the exact cost-versus-return split the thesis predicts, and it gives the trend a measured basis rather than anecdote.