API rate limiting helps manage the number of requests an application can make to a specific API within a defined timeframe. This practice is crucial for maintaining the API's performance, preventing abuse or overload, and ensuring fair resource distribution among users. Rate limiting establishes a usage quota, which, when exceeded, can trigger delays or error messages, control access, and mitigate DDoS attacks. Additionally, it enables providers to monitor usage patterns and optimize API functionality over time. By implementing rate limiting, organizations can protect their infrastructure while ensuring reliability and responsiveness for legitimate users.