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Prediction markets surpassed $4bn in weekly trading volume in December, cementing rapid growth across 2025.
Platforms including Polymarket and Kalshi regained momentum after the 2024 US elections, repeatedly setting new volume highs.
The sector attracted hundreds of millions of dollars in funding at multi-billion-dollar valuations during the year.
Industry insiders expect prediction markets to expand significantly further in 2026.
Prediction markets should be a multiple of their current size.
Dustin Gouker said.
Competition is intensifying as crypto firms, betting platforms and traditional financial institutions enter the space.
Coinbase, Crypto.com and several sports-betting operators are preparing new prediction market products.
There is room for many players because prediction markets will be limitless.
Travis McGhee said.
CME Group and FanDuel launched a joint prediction market product late last year.
Robinhood announced plans to debut its own proprietary prediction market in early 2026.
It’s the ultimate compliment that major firms are validating the industry we created.
Jack Such said.
Regulatory pressure remains a major obstacle as US state gaming authorities scrutinise prediction platforms.
Several states have issued cease-and-desist orders, arguing prediction markets resemble unlicensed sports betting.
Kalshi and Coinbase have both taken legal action to challenge state-level enforcement.
Prediction markets are not wagering or betting.
Travis McGhee said.
Analysts say court rulings and the 2026 US midterm elections could shape the sector’s future.