3 Low-Cap Altcoins Set to Benefit From 2026 Prediction Market Growth

Core Insights - Prediction markets are emerging as a significant growth narrative in the crypto sector, with billions in trading volume and increasing institutional interest as well as regulatory clarity [1] Group 1: Market Growth - By late December 2025, prediction markets recorded over $4.5 billion in weekly notional volume, marking a 12.5% week-on-week increase [2] - In November 2025, prediction markets achieved a monthly trading volume of $9.5 billion, surpassing meme coins and NFTs, which generated approximately $2.4 billion and $200 million respectively during the same period [3] Group 2: User Engagement - There are nearly 279,000 weekly active users in prediction markets, with over $4 billion in weekly notional volume and 12.67 million transactions, indicating sustained engagement rather than short-lived speculation [4] Group 3: Institutional Adoption - Institutional momentum is accelerating, with Coinbase preparing to launch prediction markets and Gemini's affiliate securing regulatory approval to offer them in the US, indicating a transition from fringe DeFi tools to regulated financial instruments [5]