Core Insights - The report by CertiK highlights the significant growth of the global prediction market, with trading volume increasing from approximately $15.8 billion in 2024 to $63.5 billion in 2025, marking a fourfold increase [1] - Despite this rapid growth, the industry faces substantial challenges in infrastructure security, compliance consistency, and long-term sustainability [1] Market Landscape - The prediction market is currently dominated by three platforms: Kalshi, Polymarket, and Opinion, which together account for over 95% of global trading volume [2] - Kalshi maintains a strong position in the U.S. market through compliance with regulations and integration with Robinhood, reaching 24 million retail investors [2] - Polymarket, despite facing geographical restrictions in the U.S., remains a preferred choice for crypto-native users and is frequently cited by mainstream media [2] - Opinion is the fastest-growing platform, capturing approximately 30% market share in a short period, leveraging incentives from the BNB chain ecosystem [2] - There is a notable "structural rotation" in liquidity, with the BNB chain's activity surpassing traditional leaders like Polygon at the beginning of 2026 [2] Top 10 Prediction Market Rankings - The rankings provided by CertiK's Skynet Top Board focus on the overall risk structure and long-term stability of projects rather than just market capitalization or trading volume [3] Security Risks - The rapid growth of the prediction market has amplified security risks, including: - Fragmented regulatory landscape leading to compliance challenges across different jurisdictions [4] - High estimates of up to 60% of false trading volumes during peak incentive periods, distorting liquidity metrics [4] - Vulnerabilities in Web2 access layers, as demonstrated by a December 2025 incident involving Polymarket's identity verification provider [4] - Retained administrative privileges on decentralized platforms, which pose risks to user funds and market fairness [4] Regulatory Developments - Hong Kong, Dubai, and Singapore are actively working to establish clear regulatory frameworks for prediction markets, with Hong Kong expected to clarify rules soon [5] Future Outlook - For prediction market platforms to survive long-term, they must maintain liquidity across multiple jurisdictions, build secure infrastructure to attract institutional funds, and develop sustainable business models independent of incentive-driven trading volumes [6] - The industry's security challenges have evolved from solely smart contract risks to encompass oracle mechanisms, administrative privilege management, and systemic issues arising from mixed Web2 and Web3 architectures [6] Security Solutions - CertiK has introduced targeted solutions to address these risks, including smart contract audits, real-time monitoring, oracle security reviews, and Web2.5 penetration testing [7] - The report emphasizes that enhanced security capabilities are becoming essential for prediction market platforms to gain long-term trust and ensure sustainable development [7]

Core Insights - The 2025 Web3 Security Report by CertiK indicates that losses from hacking, scams, and vulnerabilities are projected to reach approximately $3.35 billion, an increase from $2.446 billion in 2024 [1] - Excluding the significant Bybit incident, which accounted for about $1.447 billion, the overall amount of stolen funds is lower than the previous year, highlighting a trend of "decreasing event numbers but increasing single-event loss sizes" [1] - Supply chain attacks have resulted in the highest monetary losses, while phishing attacks have the highest number of incidents; Ethereum remains the blockchain with the most concentrated security events [1]

Core Insights - The report by CertiK indicates that losses due to security incidents in the Web3 sector reached nearly $2.5 billion in the first half of 2025, surpassing the total losses of the previous year [1] - The second quarter alone accounted for approximately $800 million in losses, with confirmed unrecoverable net losses totaling $2.29 billion for 2025, exceeding last year's net losses of $1.98 billion [1] - A significant portion of this year's losses, about $1.78 billion, was concentrated in two incidents involving Bybit and Cetus Protocol, suggesting that the overall risk landscape requires a nuanced perspective [1] Group 1 - Phishing attacks have emerged as the most damaging attack method, resulting in losses close to $400 million, surpassing levels from the same period last year [1] - Incidents of private key leaks have decreased, while code vulnerability attacks remain at historical average levels, although specific cases like Cetus Protocol still occur [1] Group 2 - The report details the most attacked blockchains, the top three security incidents of the quarter, and trends in Web3 development, providing security enhancement recommendations for users and project teams [2] - CertiK emphasizes the need for improved preemptive protective mechanisms, enhanced transparency, and strengthened real-time monitoring capabilities as more users, institutions, and government entities engage with Web3 [2] - The Hack3d security report is published quarterly to review security incidents and industry trends, offering insights into the current state, challenges, and opportunities in Web3 security [2]