Automated strategies gain momentum as traders adapt to narrowing volatility and sideways price action
As cryptocurrency markets spent much of 2025 moving within tight ranges, traders increasingly turned to automated trading bots to extract profits from short-term price fluctuations. With sustained breakouts harder to maintain, algorithmic strategies offered a more consistent way to navigate choppy conditions.
Exchange data from 2025 shows a sharp rise in the use of grid trading bots, particularly on spot markets. Overall grid trading volume increased by nearly 100% year over year, while the amount of capital committed to these strategies roughly doubled. The growth was most pronounced in stablecoin trading pairs, where grid activity expanded by more than threefold, significantly outpacing growth seen in major cryptocurrencies.
Grid trading allows users to define a fixed price range and automatically place buy and sell orders as prices move up and down. This structure is well suited to range-bound markets, enabling traders to repeatedly capture smaller gains without relying on long-term directional trends.
liquidity and platform traffic, according to CoinMarketCap;
Beyond rule-based bots, interest in AI-powered trading agents also gained traction. These systems can make autonomous decisions, interact via natural language and execute onchain transactions directly. Surveys from 2025 indicate that over one-third of crypto participants are open to letting AI manage a majority of their digital assets.
Despite the efficiency gains, experts caution that granting automated systems direct wallet access introduces new trust and security challenges, underscoring the need for careful risk management as automation deepens across crypto trading.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.