Prediction Markets Surge to Record $2 Billion Weekly Volume as Polymarket Regains Lead

Prediction markets have shattered records with weekly trading volume exceeding $2 billion for the first time, according to Dune Analytics. Polymarket has reclaimed its position as the sector leader after an eight-week hiatus, overtaking Kalshi amid growing mainstream adoption.

Sports betting dominated activity with $414.7 million in volume last week, surpassing political markets at $322.6 million despite intensifying election-related speculation. The sector's growth reflects institutional confidence, evidenced by Kalshi's recent $300 million raise at a $5 billion valuation and Polymarket's $2 billion funding from ICE at a $9 billion valuation.

Market dynamics shifted dramatically in August when Kalshi, as the first federally regulated U.S. platform, Leveraged NFL season momentum to briefly surpass Polymarket. The latter's imminent U.S. reentry through beta testing of its domestic app has reignited competition ahead of November's high-stakes electoral events.