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.

View Original
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: U.S. intelligence assessment states that the Iranian leadership is largely intact, with no short-term collapse risk

Gate News Announcement, March 12 — Prediction market platform Polymarket posted on X that U.S. intelligence assessments indicate that the Iranian leadership remains "largely intact" and there is no imminent risk of collapse in the short term. According to data from the Polymarket platform, the market's predicted probability of the Iranian regime collapsing before June 30 is 24%.

GateNews1h ago

Polymarket launches the Shanghai and Hong Kong temperature forecast event on March 13

Gate News Announcement: On March 12, Polymarket is now live with weather prediction events in Shanghai and Hong Kong. The specific events are "Highest temperature in Shanghai on March 13" and "Highest temperature in Hong Kong on March 13." Users can participate in predictions and trade.

GateNews1h ago

Myriad to Use USD1 on BNB Chain as Exclusive Settlement Asset

Prediction market Myriad is transitioning to World Liberty Financial’s USD1 stablecoin as its exclusive settlement asset. As part of the move, Myriad, owned by _Decrypt_’s parent company Dastan, is migrating its entire prediction market catalog to BNB Chain. > Welcome to MYRIAD Season 3. > > Our b

Decrypt8h ago

Polymarket 5-Minute Price Movement Prediction Market Daily Trading Volume Surpasses $60 Million

Gate News Report, March 11 — Polymarket's 5-minute rise and fall crypto prediction market, launched less than a month ago, has become the platform's most popular market, with daily trading volume surpassing $60 million. The market offers 288 prediction windows per day, accounting for 67% of Polymarket's total trading volume across all crypto rise and fall prediction markets.

GateNews10h ago

Backpack is scheduled for around March 23rd TGE, the exact date will be announced tomorrow.

Backpack CEO Armani Ferrante announced during a Twitch live stream on March 11 that the token TGE is expected around March 23, with the exact date to be announced on March 12. Polymarket data shows a 100% probability that Backpack TGE will occur before the end of December and a 93% probability before the end of March.

GateNews11h ago

Chainlink Expands on Solana With Jupiter Prediction Market Integration

Jupiter has plugged in Chainlink’s Data Streams for its 5-minute and 15-minute prediction markets on Solana. While Jup Predict now relies on Data Streams for its short-duration crypto markets, Jupiter has not added Chainlink to its wider DeFi protocol. Chainlink has announced a new

CryptoNewsFlash11h ago
Comment
0/400
No comments