Polymarket has achieved significant growth in trading volume, reaching $1.16 billion monthly, while the number of active traders continues to decline.
Volume Achievement
Polymarket marked a month with a trading volume of $1.16 billion, indicating substantial interest in the platform and an increase in trade sizes despite a decrease in active users. The average trade size on the platform amounts to approximately $4,800.
Decline in Active Traders
Despite the growth in trading volume, the number of active traders on Polymarket continues to fall. This points to the fact that while the number of participants is decreasing, those who remain are placing larger bets.
Market Impact and Predictions
The markets associated with USDC and BTC are showing increased activity, particularly ahead of major events like Bitcoin price predictions. This aligns with the overall surge in volumes witnessed in the cryptocurrency market during the 2024 US elections. Polymarket's founder, Shayne Coplan, remarked, "We are thrilled to see new volume records on our platform, indicating strong interest and participation in decentralized prediction markets."
Thus, the growth in trading volume on Polymarket, amidst a decline in the number of participants, reflects changes in trader behavior and underscores continued interest in decentralized prediction markets.
