Polymarket Regains Momentum Among Users Amid Wash Trading Concerns in 2025

• Why Is Polymarket’s Trading Volume Surging Again?
• How Did Social Media Drive Polymarket’s User Growth?
• What’s Behind the Wash Trading Allegations?
• Can Polymarket Sustain Its Growth Despite the Controversy?
• FAQs About Polymarket’s Resurgence

Polymarket, the prediction market platform, is experiencing a resurgence in user activity and trading volumes, nearing its 2024 U.S. election peak. However, a Columbia University study reveals that up to 25% of its trading volume could be wash trading, with some weeks showing nearly 60% fake activity. Despite these concerns, the platform’s visibility and engagement continue to grow, driven by social media buzz, wallet integrations, and anticipation around its POLY token.

Why Is Polymarket’s Trading Volume Surging Again?

Polymarket is bouncing back after a cooling-off period, with weekly trading volumes hitting $961 million and 247,000 active users—just shy of its November 2024 record. The platform’s revival is fueled by a mix of crypto-native and mainstream users, with liquidity currently at $248 million (down from its $375 million peak during the election frenzy). Trading activity is now more evenly distributed across diverse markets rather than being concentrated on a single event.Source: CoinTribune

How Did Social Media Drive Polymarket’s User Growth?

Social media virality has been a game-changer for Polymarket. Political and global events—not just sports—have reignited interest, with users flocking to the platform for real-time predictions. Easier wallet integrations (like MetaMask and BTCC’s seamless onboarding) have also lowered barriers for newcomers. Active wallets skyrocketed from 6,000 to 84,000 in October, while retail-sized bets increased due to HYPE around the upcoming POLY token airdrop.Source: CoinTribune

What’s Behind the Wash Trading Allegations?

A Columbia University study analyzed two years of on-chain data and found alarming patterns: 25% of Polymarket’s historical volume may be wash trading, with December 2024 peaking at 60% fake activity. Researchers identified clusters of wallets engaging in circular trades—43,000+ wallets moved $1 million in volume, mostly in penny markets. These loops suggest manipulation aimed at gaming POLY token rewards rather than genuine speculation.Source: CoinTribune

Can Polymarket Sustain Its Growth Despite the Controversy?

Oddly enough, the wash trading drama hasn’t dented Polymarket’s momentum. The platform’s October volumes hit $4.1 billion, trailing only Kalshi ($4.4 billion). Google search trends also show rising interest in polarized topics tied to Polymarket markets. As one BTCC analyst noted, “The POLY token’s 203% mindshare spike suggests users are betting on the platform’s long-term viability—wash trading or not.”

FAQs About Polymarket’s Resurgence

How much of Polymarket’s volume is fake?

Columbia’s study estimates 25% overall, with spikes to 60% during high-attention periods like December 2024.

What’s driving Polymarket’s user growth?

Social media virality, political/global events, and POLY token rewards are key factors.

Is wash trading illegal on Polymarket?

While against platform rules, enforcement remains challenging due to decentralized infrastructure.