Polymarket Witnesses Record $100 Million Trading Volume Spurred by U.S. Election Bets
Summary:
Polymarket, the decentralized predictions platform, hit a $100 million trading volume in June. This was driven by increased bets on the U.S. presidential 2024 elections, with Donald Trump and Joe Biden leading the predictions. Other related betting markets observed substantial stakes as well. Polymarket, running on Ethereum sidechain Polygon, has also seen a significant rise in monthly active traders. The platform also raised $70 million in a funding round led by Ethereum co-founder Vitalik Buterin and Founders Fund.
In June, betters increased their wagers on the outcome of the U.S. presidential election on the decentralized prediction platform, Polymarket, reaching a monthly trading volume marker of $100 million. Currently, bets on the "Presidential Election Winner 2024" total to an impressive $203.3 million. This extends across an array of 17 prediction markets, with individual "Yes" or "No" bets. At the moment, Donald Trump is leading with a 62% bettor confidence that he will claim victory in the U.S election. This amounts to $24.7 million in cumulative bets both for and against. Joe Biden, the incumbent U.S. President, comes next with $23.9 million wagered on his chances to secure a second term. However, his odds dipped from 34% to 21% in light of his perceived underwhelming showing at the Presidential Debate of June 28, leading to a surge in odds favoring Democrats Gavin Newsom, Kamala Harris and Michelle Obama.
There are other betting markets tied to the elections pulling in hefty sums as well. The recent debate has sparked a surge in the "Biden drops out of presidential race" and "Biden drops out by July 4" markets, with "Yes" wagers presently at 43% and 9% respectively, and over $10 million staked in these markets. Moreover, potential presidential candidacies of American rapper Kanye West and cryptocurrency critic Elizabeth Warren have drawn millions in bets, though presently they suggest less than 1% likelihood. Polymarket runs on the Ethereum sidechain Polygon and it crossed the $100 million trading volume for the first time in June, pulling in $109.9 million as per Dune Analytics' dashboard. From January to May, trading volumes fluctuated between $38.9 million and $63 million, signifying a 620% surge over the preceding five months (August-December, 2023).
Active traders count in June escalated by 115% to 29,266. The overall value now secured within Polymarket stands at $40.2 million, marking a near 69% escalation over the past 30 days, as Token Terminal data highlights. Furthermore, markets for cryptocurrency prices and the UEFA European Football Championship 2024 have also reported substantial trading volumes on Polymarket.
Since its inception in June 2020, Polymarket has raised a significant $70 million in funding led by Ethereum co-founder Vitalik Buterin and Founders Fund, a venture capital firm. Yuga Cohler, Coinbase cryptocurrency exchange's engineering lead, considers decentralized prediction markets an instrumental tool in dismantling deceiving narratives to provide a clear-sighted truth. In a June 30 blog post, Cohler commented that prediction markets are "freedom preserving technology that move societies forward".
Published At
7/1/2024 4:15:20 AM
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