Prediction Markets Hit Record Trading Volume as Fragmentation Concerns Mount

Prediction markets reached an all-time high of $3.7 billion in weekly trading volume and $5.57 billion in notional volume, continuing a trend that began in 2025 where activity surpassed meme coins and NFTs. This surge is concentrated in political, sports, and crypto-related markets on platforms like Polymarket and Kalshi, with user engagement also increasing. While some traders have seen massive gains, others have incurred significant losses, highlighting market risks. Major industry players, including Coinbase, Gemini affiliates, and Trump Media & Technology Group, are reportedly entering the space. However, this rapid expansion fuels concerns about market fragmentation, with some experts fearing an influx of low-liquidity, spam markets. Furthermore, several incidents suggesting insider trading—such as large profits made just before political arrests or the announcement of Google search results—have raised serious questions about the integrity of event-based betting.

(Source：BeInCrypto)