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The DeFi market thrives on volatility, an opportunity that arbitrage bots maximize by capturing price inconsistencies.
However, these bots should be updated with the most cutting-edge features to ensure these align with the current market necessities. Here is what we can expect in the future about Crypto Arbitrage Bot development.
- Adopting DeFi: DeFi (Decentralized Finance) is booming, and crypto arbitrage bots are expected to benefit from it. With this integration into DeFi protocols, bots get more opportunities outside centralized exchanges. This gives them a wider market reach such that they can exploit price disparities across the broad DeFi ecosystem.
- Faster than Light: In crypto’s rapid world, every millisecond counts. Trade execution at lightning speed will be at the heart of new-age Crypto Arbitrage Bots. They do this by adopting highly advanced algorithms to identify and take advantage of price divergences within milliseconds and increase profits before market retractions occur.
- AI-driven Approaches: The use of AI across industries has also affected Crypto Arbitrage Bot development in several ways. Through machine learning, bots can analyze huge quantities of market information to project where prices are moving and find more sophisticated sources for arbitrage. Such complexity will enable them to outperform their rivals in trading competitions.