Coinbase: Prediction Markets Signal Growing Mainstream Crypto Integration as Kalshi Hits $5B Valuation

The recent $300 million funding round and $5 billion valuation achieved by prediction market platform Kalshi represents a significant milestone in the convergence of traditional finance and cryptocurrency markets. As Kalshi expands globally to over 140 countries and projects astronomical growth from $300 million to $50 billion in annualized trading volume, this development signals broader acceptance of prediction markets as legitimate financial instruments. For cryptocurrency platforms like Coinbase, this trend underscores the expanding ecosystem where digital assets and prediction markets increasingly intersect, creating new opportunities for market participation and financial innovation. The massive valuation and rapid scaling of prediction markets demonstrate how blockchain-adjacent technologies are gaining mainstream financial traction, potentially paving the way for greater integration between traditional trading platforms and emerging market structures in the digital asset space.

Kalshi Raises $300M at $5B Valuation, Expands Prediction Markets Globally

Online prediction market Kalshi has secured over $300 million in funding, achieving a $5 billion valuation as prediction markets gain traction in mainstream finance. The platform now extends its services to users in more than 140 countries, marking its first significant international expansion.

Kalshi anticipates $50 billion in annualized trading volume this year, a dramatic increase from $300 million in 2023. The company now commands over 60% of the global market share, outpacing competitor Polymarket. Major investors, including Sequoia Capital, Andreessen Horowitz, and Coinbase Ventures, led the funding round.

Growth has been fueled by sports betting, particularly parlays, intensifying competition for traditional sportsbooks like DraftKings and FanDuel. Kalshi has also partnered with trading platforms such as Robinhood and Webull to democratize event trading.

Despite regulatory challenges—including lawsuits from multiple U.S. states alleging evasion of sports betting laws—Kalshi recently cleared a critical hurdle with the U.S. Commodity Futures Trading Commission.

Coinbase CEO Condemns Proposed DeFi Bill as Threat to U.S. Crypto Innovation

Senate Democrats' proposed DeFi legislation has ignited fierce industry opposition, with Coinbase CEO Brian Armstrong leading the charge. The bill's stringent KYC requirements for non-custodial wallets and classification of developers as financial intermediaries could effectively ban decentralized finance development nationwide.

Armstrong's October 9 condemnation called the proposal "bad, plain and simple," warning it would stifle innovation and drive crypto talent overseas. The Blockchain Association echoed these concerns, labeling the measures unworkable and damaging to the ecosystem. Bipartisan crypto negotiations have reportedly collapsed amid the controversy.

The legislation's broad definitions could impose traditional financial regulations on open-source developers—a move experts say WOULD cripple DeFi's permissionless nature. "We absolutely won't accept this," Armstrong stated, vowing to continue working with Congress to protect economic freedom while positioning the U.S. as the crypto capital of the world.

Coinbase CEO and Crypto Leaders Condemn Senate Democrats' DeFi Regulatory Proposal

Coinbase CEO Brian Armstrong has sharply criticized a leaked Senate Democrats' proposal aimed at regulating decentralized finance (DeFi), labeling it a threat to U.S. leadership in the crypto sector. The draft legislation would impose stringent rules, including Treasury oversight of high-risk DeFi protocols and Know Your Customer (KYC) requirements for non-custodial wallets.

Armstrong warned on X that the measures risk stifling innovation and driving crypto development offshore. "It’s a bad proposal, plain and simple, that WOULD set innovation back," he wrote. Blockchain Association CEO Summer Mersinger joined the backlash, arguing the proposal would effectively ban DeFi and wallet development in the U.S.

The crypto community widely views the legislation as incompatible with technological progress. Industry leaders emphasize the need for balanced regulation that fosters innovation while addressing risks.

Trump's Tariff Threat Sparks Crypto Selloff as Bitcoin Drops Below $119K

Bitcoin's rally to record highs reversed sharply as geopolitical tensions rattled markets. The cryptocurrency fell below $119,000 after former President Donald TRUMP proposed steep tariff increases on Chinese goods, triggering broad risk aversion.

The selloff accelerated across digital assets, with Ethereum, solana and XRP mirroring Bitcoin's decline. Crypto-linked equities suffered collateral damage—Coinbase and MicroStrategy lost 5% and 3% respectively, while trading platform Robinhood dropped 5%.

Traditional markets echoed the turmoil. WTI crude plunged below $60 as the S&P 500 and Nasdaq shed over 1%. Gold's 1% surge to $4,000/oz underscored its enduring status as the preferred haven asset during market stress.

At $118,800, Bitcoin now sits 6% below its $126,000 peak from four days prior. The swift reversal highlights crypto's continued sensitivity to macro shocks despite growing institutional adoption.

Kalshi Secures $300M Series D at $5B Valuation to Fuel Global Expansion

Prediction market platform Kalshi has raised $300 million in a Series D funding round led by Sequoia Capital and Andreessen Horowitz, achieving a $5 billion valuation. The capital will support international expansion into 140+ countries, capitalizing on growing demand for event-based trading.

The New York-based firm now dominates 60% of the global prediction market, surpassing rival Polymarket with nearly double its trading volume. September metrics from Dune Analytics show Kalshi processing $50 billion in annualized volume as users flock to its political, sports, and news event contracts.

Sports betting has been a particular growth driver since the 2018 Supreme Court ruling legalized the practice nationwide. Kalshi's innovative parlay products have captured significant market share in the $13.7 billion U.S. sports wagering industry.

XRP Price Prediction: Breakout Potential Amid Supply Squeeze

XRP is emerging as a focal point for traders, with analysts highlighting its potential as a breakout candidate under $1. Institutional interest and tightening supply dynamics are fueling bullish sentiment. Exchange reserves have plummeted, with reports indicating a 90% reduction on Coinbase—a classic sign of accumulation.

The cryptocurrency is currently trading within an ascending wedge pattern between $2.7 and $3.25. A decisive breakout above $3.25 could propel prices toward $4.50 or higher. Regulatory clarity for Ripple has strengthened the narrative, positioning XRP as a gateway altcoin for new market entrants.

Yet beneath the surface, capital is quietly flowing into alternative payment infrastructure projects. One such project, Remittix, is gaining traction as a potential rival to XRP's dominance in cross-border payments. Market dynamics suggest the next wave of gains may not be limited to XRP alone.