:max_bytes(150000):strip_icc()/GettyImages-2243822810-32218d2b07574efaad79f19499d7642a.jpg "Prediction Markets Are Where the Action Is. And Trump Media Is Getting In On the Game")
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Key Takeaways
- Weekly prediction market trading volume hit a record high of over $2 billion last week, according to research platform Dune.
- This month alone, two of the largest events contracts operators were eying valuations above $10 billion.
Digital prediction markets are drawing in throngs of users—and investors.
The markets have become increasingly popular, sparking a rush of new and rumored capital into them. Just this month, New York Stock Exchange parent Intercontinental Exchange (ICE) announced a $2 billion investment in Polymarket, recently said to be in discussions to raise money at a valuation as high as $15 billion. (Polymarket did not respond to Investopedia’s request for comment in time for publication.)
Kalshi was reportedly receiving funding offers valuing it at more than $10 billion, double what it fetched weeks earlier on a $300 million funding round. And sports betting giant DraftKings (DKNG) last week acquired predictions platform Railbird.
Why This News Matters To You
Speculating is trending in stock markets, sports betting, and the broader world of prediction markets. The latter are shaping up up to be the new playgrounds for retail investors—and attracting those who want in on the action.
The investor interest follows user activity. Weekly prediction market volume hit a record high last week of over $2.3 billion, across a handful of tracked platforms including Polymarket and Kalshi, according to estimates from research platform Dune derived from data on the blockchain.
Trump Media & Technology Group (DJT), the company co-founded by President Donald Trump, is the latest to advance further into prediction markets. The company said Tuesday that it partnered with Crypto.com, a coin trading platform whose name adorns the Lakers’ basketball stadium, to launch Truth Predict. It will let users bet on the outcomes of events, whether a basketball game or an election, through the social platform.
Polymarket and Kalshi launched in 2020 and 2021, respectively, around the time when meme-stock trading took off, and now they have a lot more competition.
Robinhood (HOOD) launched its prediction markets hub this year in time for the NCAA’s March Madness tournament and the Federal Reserve’s interest rate decisions. How its prediction markets are faring will likely be a highlight when it reports third-quarter earnings next week.
