CertiK: Prediction market to reach $63.5 billion in trading volume by 2025, with the industry facing security and regulatory challenges

PANews February 10 News, according to the “2026 Skynet Prediction Market Report” released by CertiK, prediction markets saw trading volume grow to $63.5 billion in 2025, achieving a fourfold increase, with Kalshi, Polymarket, and Opinion becoming dominant platforms. However, this growth also brought new risks, including oracle vulnerabilities, administrator key misuse, and Web2.5 architecture issues.
The report states that prediction markets are considered legal financial products in the United States through CFTC rulings, but are viewed as unlicensed gambling and banned in several EU countries. Additionally, regulatory differences across US states may further complicate compliance. In December 2025, Polymarket’s third-party certification provider experienced a security incident, exposing centralized failure points in the hybrid Web2/Web3 architecture. The study also estimates that during the airdrop peak, manual trading on some platforms accounted for up to 60%, severely distorting liquidity metrics.
CertiK predicts that in 2026, prediction markets will see accelerated technological privacy enhancements and institutional adoption, but platforms will need to address liquidity maintenance, security infrastructure development, and revenue model sustainability to achieve long-term growth.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Polymarket bags 97% of onchain prediction market fees after pricing overhaul

Polymarket has seen a significant revenue surge, generating $7.1 million in fees in just one week, placing it as a top player in decentralized finance. Recent partnerships and upgrades signal strong growth, though regulatory challenges persist.

Cointelegraph7h ago

Fox News teams up with Kalshi to improve the accuracy of news reporting using predictive market mechanisms

Gate News message, on April 7, the U.S. news network Fox News officially integrated the Kalshi platform, using prediction market mechanisms to add accountability to news reporting while encouraging content to be closer to the facts. As one of the three major mainstream U.S. news networks, Fox News hopes to use prediction markets to eliminate bias, strengthen accuracy, and ensure that news reporting is not influenced by political stances, with correctness as the guiding principle.

GateNews7h ago

Prediction markets win big! Court rules: New Jersey has “no authority to ban” Kalshi from launching sports event contracts

The U.S. Federal Court of Appeals ruled that the state of New Jersey lacks the authority to bar Kalshi, a sports-betting prediction market platform regulated by the CFTC, from launching sports event contracts, finding that federal law takes precedence over state law. Although Kalshi prevailed, experts say this is only a temporary victory, and the Supreme Court will ultimately need to decide the jurisdiction issue.

区块客8h ago

Polymarket "Probability of a ceasefire between Iran and Israel by May 15 falls to 37%, down 45% over the past 24 hours"

Polymarket data shows that the probability of a ceasefire between the U.S. and Iran by May 15 has fallen to 37%. The total trading volume of this event contract exceeds $107 million. U.S. Vice President Vance reiterated the final deadline for Iran, while Trump threatened that there will be strikes if the Strait of Hormuz is not reopened.

GateNews8h ago

Kalshi data: the probability that markets expect the Federal Reserve to hold rates steady this April is 98%

Gate News message, April 7, Kalshi’s latest data shows that the market is betting on a 98% probability that the Federal Reserve will hold steady in April this year, and a 2% probability of a 25-basis-point rate cut. As of now, trading volume in this prediction market has exceeded $10 million.

GateNews12h ago
Comment
0/400
No comments