Prediction Markets Hit $9B Volume Surge as Polymarket and Kalshi Dominate
Prediction markets are on fire, smashing past $9 billion in total volume with a staggering 7.6 times year-over-year growth. Platforms like Polymarket and Kalshi are leading the charge, turning on-chain betting into a powerhouse of DeFi innovation. This explosive rise signals crypto's real-world utility kicking into high gear amid market turbulence.
In the latest Web3 news recap from analyst Pawnie, on-chain prediction markets have rocketed to over $9 billion in volume, a 7.6x increase from last year, with Polymarket and Kalshi at the forefront. This surge comes as Bitcoin hovers around $67,700 and fear grips the market at a Greed Index of just 9/100. Wintermute CEO Evgeny Gaevoy highlighted a key caveat, noting Ethereum's massive $120 billion TVL is largely dormant, questioning true decentralized adoption. Gaming Today's recent comparison shows Kalshi grabbing 60-65% market share in 2026, reversing Polymarket's earlier lead, with Kalshi hitting record days like $465 million in trading volume last month. Polymarket, however, boasts impressive cumulative figures, crossing $9 billion in 2024 alone per Medium analysis, fueled by 314,500 active traders in peak months. CoinDesk reports Kalshi's weekly volumes exceeding $500 million, outpacing Polymarket amid U.S. trading booms. This growth underscores prediction markets' edge in events from elections to sports, blending fun with financial insight. StartEngine notes Polymarket's monthly peaks at $3 billion in late 2025, drawing institutional eyes with $9 billion valuation talks. As Base integrates appcoins and AI tools like EVMbench emerge, these platforms funnel liquidity into ecosystems, challenging skeptics on DeFi's stickiness.
This volume boom funnels fresh capital into crypto, proving prediction markets' appeal beyond speculation. For web3 enthusiasts, it validates DeFi's utility, countering TVL dormancy critiques and attracting newcomers via engaging bets. Expect tighter competition, regulatory scrutiny, and broader adoption as platforms evolve.
Prediction markets are redefining DeFi's narrative with tangible growth. As Polymarket and Kalshi push boundaries, watch for even bigger volumes and innovations ahead. The future looks bullish for this high-stakes arena.
Sources:
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