The blockchain-based prediction platform Polymarket thrived in recent months as the US presidential election race played out, but there were concerns it would contract once the red, white, and blue ticker tape settled.
From predictions of Joe Biden making way as the Democrat candidate, to the face-off between his former vice-president, Kamala Harris, and Donald Trump, Polymarket had it all covered with plenty of traction gained along the way.
As we approach the end of the year with the race for the White House done and dusted, it appears Polymarket is set on firm ground.
On the day Americans went to the polls, Animoca’s research division instigated a report that found Polymarket had enough non-election traffic to see it through and that has remained consistent one month later.
Animoca noted three-quarters of users were making trade contracts on the platform unrelated to the election, backed by live data.
No drastic drop since election week
On Polymarket, a lot can be gathered from tracking the open interest – that is the total value of active positions in play on the various markets offered by the platform. This indicates several important factors including liquidity, activity, and overall engagement.
Recent data from Dune Analytics showed a high watermark of $475 million in open interest on election day in the United States. While this has dropped following the poll, as expected, fresh gains have been noticeable in recent days.
Over the last week, active wallets on Polymarket, which shows the number of traders operating, have been recorded at around 35,000. This isn’t a drastic drop from the 39,100 average in the week of the US election.
As reflected in the user numbers, the data indicates Polymarket isn’t restricted to major events to drive its volumes. Roughly, 60% of all wagers are coming in under $100, with only 5.8% of bets between $1,000 and $5,000.
Bets like the $30 million backing for a Trump success last month are generally an exception to the rule, but on the back of this $50 million return, French authorities widened their investigation into the platform.
Polymarket appears to be a permanent addition to the betting landscape, but there are still issues to be ironed out.
On this note, legal and regulatory wrangles could be significantly eased if President-elect Donald Trump follows through on his soundings to instigate a crypto-friendly framework.
Image credit: Via Ideogram
