Trading activity reaches new highs
Prediction markets recorded more than $814 million in trading volume on Sunday, marking the highest single-day total ever for the sector. The milestone caps six consecutive months of rising activity and places January on track to surpass its previous monthly record, according to data from :contentReference[oaicite:0]{index=0}.
Total trading volume across major platforms has already reached approximately $10.5 billion this month, with more than a third of January still remaining. That figure is rapidly approaching December’s $11.5 billion total, indicating that a new monthly high is likely unless activity slows sharply.
Kalshi leads as new platforms gain ground
:contentReference[oaicite:1]{index=1} continued to dominate the sector, posting over $535 million in trading volume on Sunday alone. :contentReference[oaicite:2]{index=2} followed with roughly $127 million in volume.
Opinion, a newer platform backed by YZi Labs, an investment firm associated with :contentReference[oaicite:3]{index=3}, generated about $84 million in daily volume. The data shows Opinion steadily capturing market share, particularly at the expense of Polymarket.
Fees surge as monetization accelerates
The rise in trading activity is translating into record platform revenues. Aggregate fees across prediction markets exceeded $2.7 million last week, the highest level recorded to date.
Opinion accounted for roughly 54% of total fees, or just over $1.5 million. Polymarket generated approximately $787,000, driven entirely by its short-duration 15-minute markets, which now represent more than 28% of total sector fee revenue.
Growing relevance within broader markets
The surge in activity pushed prediction markets’ share of overall spot trading above 1% for the first time, according to data compiled by :contentReference[oaicite:4]{index=4}. While still modest in absolute terms, the threshold highlights how quickly the sector has expanded from niche participation.
In a recent report, :contentReference[oaicite:5]{index=5} said prediction markets have entered a phase of broader visibility and capital formation, fueled by platform innovation and rising user engagement.
Institutional interest begins to emerge
Competition within the space continues to intensify as new entrants experiment with alternative market structures. Despite Kalshi’s leadership in volume, analysts note that liquidity remains a constraint across most platforms.
Beyond dedicated prediction markets, firms such as :contentReference[oaicite:6]{index=6} have begun rolling out event-based contracts, while traditional financial institutions including :contentReference[oaicite:7]{index=7} have publicly acknowledged exploring the sector amid evolving U.S. regulation.
