Prediction markets volume reached a record $2 billion weekly as Polymarket regains its lead over Kalshi, driven by surging user activity and major funding rounds that value the industry in billions.
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Polymarket leads with $1 billion in volume, surpassing Kalshi’s $950 million amid U.S. market reentry.
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Sports markets dominate with $414.7 million, outpacing politics at $322.6 million in weekly trading.
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Industry valuations soar: Kalshi at $5 billion post-$300 million funding; Polymarket at $9 billion after $2 billion investment, per Certuity report projecting $95.5 billion by 2035.
Explore surging prediction markets volume hitting $2B weekly. Polymarket leads amid elections and sports bets. Stay ahead with COINOTAG insights on crypto trends and valuations. Read now!
What Is Driving Prediction Markets Volume to $2 Billion Weekly?
Prediction markets volume has surged to over $2 billion weekly, marking a new high as platforms like Polymarket and Kalshi see explosive growth in user engagement and trading. This milestone, tracked by Dune Analytics data, reflects broader mainstream adoption fueled by relaxed U.S. regulations and high-stakes events like elections and sports seasons. Polymarket’s beta testing for U.S. users has propelled it back to the top, overtaking Kalshi just ahead of November elections.
How Are Polymarket and Kalshi Shaping the Prediction Markets Landscape?
Polymarket and Kalshi have both experienced rapid expansions, with Kalshi initially surpassing Polymarket in August during the NFL season start, as the first federally regulated U.S. platform. However, Polymarket’s recent U.S. app beta has reclaimed its lead, with $1 billion in weekly volume compared to Kalshi’s $950 million. According to Dune Analytics, sports betting led with $414.7 million last week, edging out politics at $322.6 million, highlighting diverse market interests.
The sector nearly hit this volume last November during U.S. presidential reelection, but current dynamics show tighter competition. Limitless has grown fourfold to $21.9 million, while Myriad, from Dastan, reached $3.8 million. Regulatory easing, including CFTC no-action letters for both—Kalshi in May and Polymarket in September—has enabled U.S. access without immediate federal enforcement risks, though some states remain cautious.
Funding underscores the boom: Kalshi’s $300 million Series D, led by a16z, Sequoia, and Coinbase, valued it at $5 billion. Polymarket secured $2 billion from Intercontinental Exchange, pushing its valuation to $9 billion. A Certuity report forecasts the market reaching $95.5 billion by 2035, growing at a 46.8% CAGR, supported by increasing institutional interest and user sophistication.
Frequently Asked Questions
What Factors Contributed to the Recent Spike in Prediction Markets Volume?
The spike in prediction markets volume stems from heightened user activity during election cycles and sports events, alongside regulatory approvals allowing U.S. access. Platforms like Polymarket and Kalshi reported massive gains, with total weekly trading exceeding $2 billion for the first time, per Dune Analytics, driven by politics and sports categories.
Will Polymarket Launch a Native Token Soon?
Prediction market users on platforms like Myriad give only a 15% chance of Polymarket announcing its token in 2025, with plans likely delayed until after January. Despite reports of an upcoming launch, airdrop speculation continues to attract farmers boosting activity through strategic trading to maximize potential rewards.
Key Takeaways
- Record Volume Milestone: Prediction markets hit $2 billion weekly, led by Polymarket’s $1 billion surge as it reenters the U.S. market.
- Category Dominance: Sports trading at $414.7 million outpaces politics ($322.6 million), showing diverse appeal amid elections.
- Valuation Growth: Major funding elevates Kalshi to $5 billion and Polymarket to $9 billion, signaling long-term potential per Certuity’s $95.5 billion projection by 2035.
Conclusion
The surge in prediction markets volume to $2 billion weekly highlights the sector’s maturation, with Polymarket and Kalshi at the forefront amid regulatory progress and event-driven trading. As valuations climb into billions through strategic funding, the industry is poised for sustained expansion, potentially revolutionizing forecasting tools. COINOTAG, published January 15, 2025, encourages readers to monitor these developments for investment opportunities in emerging crypto ecosystems.
By COINOTAG Team | Updated: January 15, 2025
