Polymarket bets near $1 billion on 2024 election winner, but liquidity hurdles loom

Polymarket has collected virtually $1 billion in bets on the winner of the 2024 US presidential election.

Information from the platform at present ranks Vice President Kamala Harris, a Democratic presidential candidate, with a 50% likelihood of profitable, backed by $135 million in wagers. In the meantime, Republican candidate Donald Trump has an almost 49% likelihood, with bets totaling almost $150 million.

Crypto’s position within the election has boosted exercise on Polymarket, with each candidates exhibiting curiosity within the sector. Harris’ workforce has signaled a shift from the present administration’s anti-crypto stance, whereas Trump has discovered favor for his pro-crypto ventures.

With the election approaching, Polymarket has seen a surge in exercise. Facts Dune Analytics reveals that greater than 40,000 merchants are putting bets, growing the platform’s quantity virtually tenfold in comparison with a yr in the past.

Challenges forward

Nonetheless, the decentralized platform wants to determine easy methods to keep its volumes after the US presidential election, in accordance with a report from the Crypto.com trade.

On September 16 wire on

Crypto.com highlighted the difficulty of liquidity in prediction markets, stating that BET by Drift introduces new competitors. The report highlighted that BET advantages from current liquidity on decentralized exchanges (DEXs), not simply rivals within the prediction market.

Consequently, the trade famous that Polymarket wants to extend its liquidity in sports activities or main crypto occasions as a result of “gamers with current liquidity and horizontal enlargement capabilities (e.g. DEXs) might be a severe competitor within the [prediction] room.”

BET launched on Solana in August as a competitor to the Polygon-based protocol. Since then, the platform has loved vital adoption and continues to develop in recognition $25 million in total bets in regards to the American elections.

Away from the BET risk, the platform should additionally navigate a regulatory regime that might threaten its enterprise. The US Commodity Futures Buying and selling Fee (CFTC) has proposed a ban on ‘occasion contracts’ and lately filed a lawsuit to cease Kalshi, a US-based prediction market platform, from providing election-related betting.

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