Prediction markets are undergoing a significant transformation, evolving from a niche betting environment into a robust $240 billion industry, according to a new report by Bitget and Polymarket. This shift is largely driven by retail users who are increasingly engaging in frequent, smaller trades across various sectors, including crypto and politics. Notably, Polymarket’s trading volume skyrocketed from $1.2 billion in 2025 to over $20 billion in early 2026, with active wallets tripling in just six months.

This change in user behavior indicates a move away from sporadic, large bets to a more continuous trading model, where over 82% of users are making trades of less than $10,000. As prediction markets become integral to tracking real-time expectations on economic and political events, they are starting to complement traditional data sources in financial analysis.

For market professionals, this evolution suggests that prediction markets could soon play a critical role in gauging market sentiment and macroeconomic trends, making them a valuable tool for portfolio management and strategic decision-making.

Source: coindesk.com