Odaily Planet Daily reports that Citizens Bank in the United States recently released a new report indicating that prediction markets are rapidly growing. The current annual revenue in the industry has exceeded $3 billion and is expected to reach $10 billion by 2030, becoming an emerging asset class.
The report shows that trading volume in prediction markets continues to rise. In January, market transaction volume increased by over 40% compared to December, and February maintained similar levels despite the typical decline after the end of the traditional sports season. Analysts believe this trend reflects the shift of prediction markets from niche betting tools to mature financial markets.
Citizens Bank believes that the key factors driving industry growth include increasing trading volume, improved market structure, and initial participation by institutional investors. Some institutions have already begun entering the market as data users and liquidity providers, laying the foundation for broader institutional adoption.
Prediction markets allow traders to price and hedge risks related to discrete events such as election outcomes, interest rate decisions, or merger approvals. Compared to proxy tools like index futures or options, they can reduce basis risk and provide real-time probability signals.
Analysts point out that the development path of prediction markets is similar to early derivatives markets and the digital asset industry, gradually transitioning from retail-led liquidity to market makers and institutional participation. Currently, representative platforms include the regulated event contract exchange Kalshi and the decentralized prediction market Polymarket. The industry as a whole is gradually moving toward mainstream finance.
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
Prediction Markets Show Stark Wealth Concentration: 84% of Traders Lose Money
Prediction markets show stark wealth concentration, with 84.1% of Polymarket traders losing money, while just 0.04% hold over 70% of profits. Legislative efforts like the BETS OFF Act aim to regulate betting on sensitive events, as concerns rise over user protections amid the entry of major financial institutions.
GateNews6h ago
DAZN Partners with ADI Predictstreet to Launch Blockchain Prediction Market for 2026 World Cup
DAZN partners with ADI Predictstreet to introduce a blockchain prediction market for the 2026 FIFA World Cup. Users can engage in real-time predictions, utilizing advanced technology for privacy and scalability, despite regulatory challenges in Europe.
GateNews12h ago
Hong Kong Suspends Basketball Betting Project Amid Concerns Over Prediction Markets and Illegal Gambling
Hong Kong's government has suspended its basketball betting project due to concerns over the rapid growth of prediction markets linked to illegal gambling. With monthly trading volumes rising dramatically, authorities aim to enhance public education and collaborate on measures against gambling.
GateNews18h ago
Hong Kong suspends the legalization of basketball betting and studies the impact and compliance issues of prediction markets
Hong Kong has suspended the legalization of basketball betting this week, while also planning to launch a study to assess the impact of prediction markets in Hong Kong and their level of adoption. Macie Mak, Commissioner for Home and Youth Affairs in Hong Kong, said that the monthly trading volume of prediction markets has grown from less than $100 million two years ago to more than $13 billion last year, with about 40% related to sports.
MarketWhisper20h ago
Polymarket Audits Builders Program Startups Over Insider Trading Concerns - Unchained
Polymarket has initiated an audit of its Builders Program after finding third-party tools that may facilitate insider trading by mimicking successful trades. The review follows scrutiny over potential market abuse linked to these apps.
UnchainedCrypto22h ago
Kalshi appeals Nevada event contract ban; CFTC jurisdiction dispute may reach the Supreme Court
Prediction market platform Kalshi has appealed a ruling by the state of Nevada banning its event contracts, and the U.S. Ninth Circuit Court of Appeals held oral arguments on April 17, but did not issue an immediate decision after the hearing. The core dispute in the case is whether Kalshi’s event contracts are “swap agreements” that fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), or whether they must be regulated by state-level activity under gambling licensing regimes. Multiple legal experts predict that the case may ultimately be appealed to the U.S. Supreme Court.
MarketWhisper23h ago
