The prediction market platform Polymarket has reached a new record in terms of trading volume. What can explain such a performance?
A new record for Polymarket
While July is not yet over, the prediction market platform Polymarket has broken a new record. Indeed, it has just recorded a monthly volume exceeding the $275 million.
Indeed, this transaction volume is quite remarkable. The previous record of Polymarket established last June, only showed a transaction volume of $111 million. Polymarket is a decentralized platform allowing betting on the outcome of many events via blockchainwhich has seen a significant resurgence of interest in recent times.
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The monthly number of traders on the platform also reached its highest level reaching 33,000. This is an increase of more than 8 times since January, when Polymarket recorded only 4,000 monthly traders.
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How can we explain such interest?
It seems that the substantial increase in activity on the Polymarket platform is inextricably linked to American political events. Indeed, the platform offering all kinds of bets, THE potential results of the next American elections are no exception to the rule.
Popular political markets on Polymarket offer betting on the next president of the united states or even on the one who will win the Democratic Party nomination to the presidential election. These markets have seen hundreds of millions of dollars flow into them.
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With recent upheavals, including the failed assassination attempt on former President Donald Trump, Speculation is rife and is driving a significant flow of bets and punters to the platform.
After incumbent President Joe Biden withdrew from the US presidential race, the platform says Vice President Kamala Harris has a 93% chance of securing the Democratic nomination. Ultimately, political betting appears to have increased Polymarket's visibility.
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Source: The Block
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide a weekly fundamental analysis.
Theo Zananiri
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