Prediction Markets Eclipse Crypto as Traders Flee $150B Token Wreckage
Polymarket's user base exploded 1,200% in 2025 as prediction markets absorbed capital fleeing cryptocurrencies. The altcoin market's $150 billion collapse triggered a historic migration – from speculative tokens to event-driven contracts.
Weekly volumes on platforms like Polymarket and Kalshi surged from $500 million to $6 billion within six months, while crypto exchange downloads halved. This pivot reflects exhaustion with token economics after 11 million coins became worthless last year.
Bitcoin ETFs bled $1.62 billion last week as institutional unwinding accelerated. 'We're seeing the death throes of the 2021-2024 token paradigm,' remarked Nikshep Saravanan, a former memecoin trader now arbitrating geopolitical prediction markets.