The prediction market sector has undergone significant changes over the past year. Interest exploded during the U.S. presidential election in November 2024, propelling this space into one of the most talked-about new sectors within crypto. On Election Day, November 4, trading activity surged to nearly $2B in notional volume, the largest in history. However, after the election, the sector failed to sustain that growth momentum, and volumes gradually cooled, becoming increasingly event driven.
Up until this period, Polymarket had effectively maintained a monopoly in the prediction market space. However, the landscape began to shift as Kalshi rose to prominence. After winning a legal battle with the U.S. Commodity Futures Trading Commission (CFTC), Kalshi secured authorization as a fully regulated prediction market, becoming the only platform accessible to institutional capital and investors seeking legal participation. This distinction became its key advantage over Polymarket.
In March 2025, Robinhood partnered with Kalshi to launch a prediction market hub within its app, laying the groundwork for mass adoption. Then, on August 14, Kalshi drew investor attention by introducing a program that offered 4% annual interest on all positions and cash balances. Just 10 days later, on the 25th, the arrival of John Wang captured the attention of CT and drove a surge in trading volume. Ultimately, Kalshi overtook Polymarket in market share and established itself as the leading player in the prediction market industry.
Meanwhile, Limitless has carved out its place in the sector with a very different narrative. Rather than leaning on regulatory legitimacy like Kalshi, Limitless emphasizes an on-chain native experience and rapid market listings. It has been expanding its community quickly, especially among small-ticket investors and crypto-native users. Although its volumes and market share still lag behind Polymarket and Kalshi, Limitless demonstrates strong growth potential through token incentives and scalability on the Base chain.
In the end, the prediction market meta is shifting away from a single platform monopoly toward a multipolar structure. Polymarket continues to capture event driven trading and crypto-native users, Kalshi leverages regulatory credibility to attract institutional capital, and Limitless is drawing in new cohorts through on-chain speed and decentralization. Together, these dynamics show that prediction markets are evolving beyond mere "crypto betting platforms" into a complex ecosystem where traditional finance and on-chain innovation coexist.
Polymarket
