Prediction markets hit $2B weekly record as Polymarket, Kalshi lead boom driven by blockchain transparency and crypto adoption.
Prediction markets have hit a new record, after crossing $2 billion in weekly trading volume for the first time. Platforms like Polymarket and Kalshi are leading the charge as traders bet on everything from the next New York City mayor to the next Super Bowl winner.
This surge has put prediction markets back in the spotlight.
The latest figures from Dune Analytics show more than 6.6 million transactions across platforms in a single week. That’s higher than during the lasy-year U.S. presidential election when activity last peaked.
Polymarket and Kalshi lead the betting charge
The fierce rivalry between Polymarket and Kalshi is affecting the industry’s new era. Polymarket is known for its on-chain transparency and has long been the top player. But Kalshi has grown fast, thanks to its push into sports betting.
Data shows Polymarket handled around $1 billion in weekly trading volume while Kalshi was close behind with $950 million. Together, they now dominate the market.
On Polymarket, just two major events, including the NYC mayoral election and the upcoming Super Bowl accounted for more than $600 million in trading. Kalshi’s trading is more spread out and covers football, college sports and politics.
Both platforms have also benefited from friendlier regulations. Earlier this year, the US Commodity Futures Trading Commission (CFTC) issued “no-action” letters to both companies, letting them expand without fear of federal enforcement.
That decision opened the floodgates for American traders who had previously been shut out.
The Crypto connection deepens
The latest boom is not just about betting. It’s about how crypto technology is changing market dynamics. Polymarket runs on blockchain rails and lets users verify trades, payouts, and liquidity in real time.
This level of transparency has won over crypto investors and data analysts who see it as a model for future decentralised finance.
Meanwhile, Kalshi has been slower to adopt blockchain, but that may soon change.
The company recently hired John Wang as its new crypto lead. During a presentation at the Solana APEX conference, Wang said crypto is “essential” for Kalshi’s next stage of growth. He hinted at plans to build new financial trading primitives powered by blockchain technology.
That interest is backed by serious money. Kalshi closed a $300 million Series D funding round this month, led by a16z and Sequoia with Coinbase joining as a new investor. The deal values the company at $5 billion.
Not to be outdone, Polymarket secured a $2 billion investment from Intercontinental Exchange, the parent company of the New York Stock Exchange. Its new valuation stands at $9 billion and shows how fast investor confidence is growing.
Crypto and traditional finance converge
Crypto’s role in prediction markets is expanding beyond payments. Developers and traders are seeing the technology as a backbone for fair and verifiable markets. Using blockchain, users can audit bets and outcomes directly without trusting a central authority.
The connection between crypto and prediction markets is also driving mainstream attention. Market observers believe that the next step will be cross-market interoperability, where users can place bets using stablecoins or trade tokenised outcomes across different blockchains.
For Polymarket, this is already happening. The platform has integrated tools that let users move funds between the Ethereum and Polygon networks.
Analysts say Kalshi’s incoming blockchain integration could level the playing field. If Kalshi embraces crypto fully, it could attract both institutional investors and crypto-native traders.
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