How Prediction Markets Could Create Crypto’s Next Billion Users

Core Insights - Prediction markets have gained significant traction in 2025, transitioning from a niche category to a booming industry with billion-dollar valuations [1][2] - Major players like Polymarket and Kalshi have raised substantial funding, with Polymarket receiving a $2 billion investment at a $9 billion valuation and Kalshi raising $300 million at a $5 billion valuation [1] - The total notional volume traded on prediction markets reached a record-high of $3.3 billion in early November, indicating robust market activity [6] Company Developments - Polymarket, founded in 2020, is recognized as the first on-chain prediction market utilizing USDC on the Polygon network, marking a significant innovation in the blockchain space [5] - Kalshi, which operates a closed system rather than a blockchain, gained approval from the CFTC to trade event contracts, paving the way for future on-chain prediction markets [4] - Other emerging players in the prediction market space, such as Opinion, Limitless, and Myriad, are also experiencing user growth and raising funds [1] Market Trends - The influx of capital into prediction market platforms is driving their popularity and growth, with significant investments being made to enhance their offerings [1][6] - The prediction market sector is seen as a potential gateway to attract a new set of users, particularly in the blockchain and crypto space, aiming to reach the next billion users [2]