Polymarket’s massive surge in trading volume from $40 million to $2.5 billion between April and October reflects a significant increase in user engagement.
By Bena Ilyas
Edited by Julia Sakovich
Updated
3 mins read
Animoca Brands Research has released a new report suggesting that Polymarket, a decentralized betting platform, is likely to retain its users even after the US presidential election. The platform’s popularity has skyrocketed in recent months, and analysts believe its appeal goes beyond the high-profile election event.
Between April and October, Polymarket’s monthly trading volume jumped from $40 million to an astonishing $2.5 billion. This represents a massive increase in user engagement and activity on the platform. Open interest on Polymarket also climbed significantly, rising from $20 million to $400 million during the same period.
In October alone, the platform’s website attracted 35 million visits, highlighting its rapid rise in popularity. Polymarket has become a standard reference not only in crypto media but also in mainstream news outlets. Some observers have questioned whether Polymarket’s popularity will wane after the US presidential election concludes.
However, Animoca Brands Research found that about 75% of users with positions are trading on topics unrelated to the election. This suggests sustained interest across a variety of subjects, indicating that users are likely to stick around. The platform covers a wide range of topics, from sports events to entertainment and global affairs, providing users with diverse opportunities to participate in prediction markets.
Additionally, the uncertainty over whether Polymarket plans to issue its own token may keep users engaged, especially those hoping for potential airdrops. The prospect of a future token can be a significant incentive for users to remain active on the platform. Analysts believe that Polymarket’s future growth hinges on how well it manages its market positioning, content strategy, and regulatory challenges.
“In the long term, Polymarket’s growth will depend on navigating its market positioning, content strategy, and regulatory landscape… To fully leverage its visibility, the team must make strategic choices to strengthen its position without losing public interest,” said analysts.
While some political figures have engaged with the crypto community, others remain hesitant. The Biden administration has had a complicated relationship with crypto, with some policies perceived as unfriendly by the industry. Former President Trump’s team has rejected collaboration with Democrats on crypto initiatives. Elon Musk was expected to join Trump at a recent Bitcoin conference in Nashville.
However, sources revealed Musk turned back when Trump declined to share the stage, wanting to be the sole political figure associated with crypto. The industry’s alignment with certain political parties can have significant implications. The crypto sector has largely aligned with the GOP, seeking influence within the party. Many campaign leaders in the industry are Republicans, and preferred candidates are often from that party.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
