Prediction markets are becoming one of the most talked about topics in crypto along with stablecoins tokenization and perpetual markets Many people still see these markets as a form of gambling but Ethereum founder Vitalik Buterin has a different view He believes prediction markets are truth seeking and can help clear out crazy opinions He gave an example of Elon Musk saying that a UK civil war was inevitable to show how markets can test such claims
Buterin also said that these platforms can be manipulated and they are not perfect but they still provide a way to find information based on real incentives and actions of users
The year 2025 has been an important one for prediction markets They gained more attention as major financial platforms started using them for risk management Polymarket is one of the leading platforms in this space It was used by the parent company of the New York Stock Exchange to share data with global financial firms This helps hedge funds and other organizations plan and manage risk
Polymarket also partnered with a large social media platform and soon reached a record high in daily trading volume at one hundred seventy nine million dollars The start of sports seasons like the Premier League in August also helped boost trading volumes Prediction markets allow users to bet on many topics from elections to cryptocurrencies
Polymarket has been the main Web3 prediction market on Polygon but other platforms like Kalshi have grown and started taking market share Kalshi uses smart contracts and works with Solana based platforms The BNB chain has also expanded its adoption of prediction markets Recently Kalshi has become the largest in the space controlling seventy three percent of market volume
Part of Kalshi’s growth happened because Polymarket faced a ban in the United States in twenty twenty two Polymarket has now resolved its regulatory issues and plans to reopen in the US It remains to be seen if Polymarket can regain its previous market position
Polymarket also faced technical issues as Polygon had downtime This made the team speed up its layer two solutions Insiders say that the upcoming launch of the POLY token could attract users back and increase trading volumes as people seek airdrops
In summary sees prediction markets as a way to find truth and separate facts from wild opinions They are not perfect but they give a real time picture of what users expect to happen in markets and events Kalshi currently leads in market volume while Polymarket works on returning to the US and improving its platform with new technology and tokens Prediction markets may become more important as people look for information and insights in a noisy world
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