Prediction Markets Surge as Major Players DraftKings and Jupiter Enter the Arena
The prediction markets industry is growing very quickly, with big corporations racing to get a piece of the action in a sector that has seen
Quick overview
- The prediction markets industry is rapidly expanding, attracting significant institutional investment and achieving monthly trading volumes exceeding $4 billion.
- DraftKings has partnered with Polymarket to launch a new prediction market platform, enhancing its entry into the crypto space after closing its NFT marketplace.
- Jupiter has introduced a beta version of its prediction market, aiming to attract new users and expand its offerings based on user feedback.
- October has seen record trading volumes in prediction markets, with Polymarket and Kalshi surpassing $4.63 billion in just the first 23 days.
The prediction markets industry is growing very quickly, with big corporations racing to get a piece of the action in a sector that has seen billions of dollars in institutional investment and monthly trading volume of over $4 billion.
DraftKings Makes a Strategic Play with Polymarket
This week, American sports betting company DraftKings made a big announcement: it will work with Polymarket to create its new prediction market platform. Polymarket will be the place where “DraftKings Predictions” will be settled. The software is likely to come out as a mobile app in the next few months after DraftKings bought the CFTC-regulated platform Railbird earlier this week.
Polymarket CEO Shayne Coplan announced the clearinghouse partnership, which would let Polymarket check deals, store collateral, and make sure that all contracts are resolved fairly and safely on the new platform. DraftKings said that the platform will be flexible enough to link to other exchanges, giving clients “one of the broadest suites of markets” that cover financial, culture, and entertainment.
This is DraftKings’ first big move into crypto-related businesses since it closed its NFT marketplace in July 2024. It also strengthens Polymarket’s position as the leader in the prediction markets field. Polymarket got its clearinghouse capabilities when it bought the US derivatives exchange QCEX for $112 million in June. This was the company’s first time back in the US market in more than two years.
New Entrants Like Jupiter Solidify Market Expansion
At the same time, Jupiter, a decentralized exchange aggregator based on Solana SOL/USD, has released the beta edition of its Jupiter Prediction Market in conjunction with Kalshi. The complete launch is planned for the end of the year. According to Kash Dhanda, Jupiter’s chief operations officer, prediction markets are “a powerful evolution in the types of assets that are available onchain.” They will help bring in new users to the platform, which now has 8.4 million active users.
The beta version of Jupiter started with just one market for the Mexico Grand Prix Formula One race and immediately made $120,000 in volume. The platform wants to slowly add more markets and raise position limits based on what users say during the fourth quarter.
The fast growth comes at a time when institutions are more interested in prediction markets than ever before. The New York Stock Exchange’s parent company, Intercontinental Exchange, put $2 billion into Polymarket in early October, bringing the company’s value to $9 billion. Kalshi, on the other hand, raised $300 million in Series D funding at a $5 billion valuation. This was backed by well-known venture capital firms including Sequoia Capital, Andreessen Horowitz, and Coinbase Ventures.
Prediction Market Volumes Soar Past $4.6 Billion
October has been a great month for the sector. In just the first 23 days, Polymarket and Kalshi traded more over $4.63 billion, breaking September’s record of $4.17 billion. This month, Kalshi alone has made $2.87 billion, which is the most it has ever made in a month. The total amount of trading on all platforms for the week ending October 13 was $2.03 billion, the highest amount ever.
This month, Polymarket has also made big integrations, such as with Sam Altman’s World App and the crypto wallet MetaMask. The MetaMask integration is expected to be finished by the end of the year. These agreements, together with the arrival of well-known companies like DraftKings and Jupiter, show that prediction markets are quickly transitioning from niche cryptocurrency uses to mainstream financial products that have a lot of institutional support and regulatory sanction.
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