By Prediction Market Edge | Dec 16, 2025

After the new 88-page report from Keyrock and Dune Analytics dropped, analysts were going bonkers. 

The headline number is hard to ignore: prediction market volume has grown 130 times since early 2024. 

From under $100 million per month to over $13 billion today

130x.

User base exploded, growing 150 times to over 600,000 participants. 

This makes prediction markets one of the fastest-growing financial sectors in the world right now. 

And it’s not all sports betting.

In fact, the biggest growth in 2025 is coming from non-sports markets like Economics (up 905%) and Tech & Science (up 1,637%). 

For years, prediction markets were dismissed as a niche curiosity.

Something for crypto enthusiasts and political junkies, but not serious finance.

That narrative is dead.

Here’s why:

First, Polymarket returned to the U.S. After getting approval from the CFTC, the platform is now rolling out its app to American users, allowing real-money event contracts on sports, politics, and more.

A landmark 2024 court ruling established that political event contracts are not gaming, opening the door for regulated markets globally.

Second, Wall Street. Intercontinental Exchange (ICE), the company that owns the New York Stock Exchange, just invested $2 billion in Polymarket, while Kalshi is raising $1 billion.

The owner of the NYSE just put $2 billion into a prediction market platform. These aren't for "degens" anymore. Institutions are here.

Can you see where we’re headed?

Prediction markets are right 90-95% of the time, beating polls, expert judgment, and even weather models.

They offer 77% better odds than traditional sportsbooks by cutting out the house and operating peer-to-peer, so you get the true market price.

Sure, some people call it a scam, “no difference than gambling”, but besides missing the truth, they’re missing the broader point

But here's the thing:prediction markets are now functioning as the ultimate leading indicator.

They're 4.3 times more volatile than the Cleveland FedNow model, reacting in real-time and predicting macro trends before official data drops.

Forget complex derivatives, these markets let you directly hedge real-world events like elections, recessions, and regulatory changes.

Polymarket also has better user retention than over 85% of crypto protocols.

This is what the early days of a new financial market look like.

The infrastructure is being built. The institutions are moving in. The volume is exploding.

And we haven’t even started yet.

The best way to prepare and position ahead for the tsunami of prediction market news, podcasts, programs, tools and ways to gain an edge?

Is to start now by subscribing to Prediction Market Edge and get the latest, breaking news, and most important information you need in the prediction markets. The most important 3 minutes of your day.

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