The prediction market sector experienced explosive growth in 2025, with total volume skyrocketing from $15.8 billion in 2024 to $63.5 billion, according to a February 2026 report by blockchain security firm CertiK. This rapid expansion is driven by platforms like Polymarket, Kalshi, and Myriad, which allow users to speculate on future events ranging from crypto market movements to geopolitical outcomes.
Major platforms are achieving significant valuations and funding. Kalshi, the top prediction market by volume as of February 2026, reached an $11 billion valuation following a $1 billion funding round in November 2025. Polymarket was valued at $9 billion after a $2 billion investment from Intercontinental Exchange in October 2025 and has filed trademark applications for POLY and $POLY, hinting at a potential native token launch. Meanwhile, the on-chain platform Myriad, launched by Decrypt's parent company Dastan, raised $20 million in a pre-Series A round in February 2026, backed by firms including Hack VC and Jump Crypto.
Regulatory challenges persist alongside growth. The sector faces ongoing scrutiny from U.S. and international regulators. In 2022, Polymarket was fined $1.4 million by the U.S. Commodity Futures Trading Commission (CFTC) for operating an unregistered facility. While the Department of Justice (DOJ) and CFTC wound down investigations into Polymarket in July 2025, the platform still faces bans in Portugal and Hungary in early 2026. In the U.S., Kalshi faced a temporary ban in Massachusetts in January 2026, and Polymarket received a temporary restraining order from a Nevada state court in February 2026.
Mainstream adoption is increasing. Media outlets like the Wall Street Journal and Newsweek now regularly report on prediction market odds alongside traditional polls, signaling growing legitimacy. A January 2026 survey found that almost a third of Americans expect online betting to become a more important part of culture, with younger consumers showing higher awareness of platforms like Polymarket and Kalshi.
Despite the regulatory headwinds and challenges like wash trading and hybrid security risks noted by CertiK, the sector's underlying growth trajectory appears strong, underpinned by a generational shift in how people engage with forecasting and speculation.
