Yeliz Akmaca 
Polymarket and Kalshi are experiencing significant growth in the financial prediction market, attracting investor interest and drawing attention with new funding rounds. Both platforms have seen a rapid increase in trading volume; in the week ending October 19, total trading volume across both platforms exceeded $2 billion, surpassing the record set during last year’s presidential election.
Polymarket: Valuation Hits $15 Billion
Blockchain-based prediction market platform Polymarket aims to raise its valuation to between $12 and $15 billion through ongoing investor discussions. This represents more than a tenfold increase from its $1 billion valuation in June.
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In June, Polymarket raised $200 million from investors led by Peter Thiel’s Founders Fund.
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Earlier this month, Intercontinental Exchange (ICE), the operator of the New York Stock Exchange, announced plans to invest up to $2 billion in Polymarket. This deal alone pushed the company’s valuation to approximately $8 billion, excluding additional new funding.
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This valuation surge made CEO Shayne Coplan the youngest self-made billionaire in the sector.
Kalshi: Valuation Exceeds $10 Billion
Kalshi, a direct competitor of Polymarket, has received investment offers valuing the company at over $10 billion, more than double the valuation reported in its funding round a few weeks ago.
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Most offers come from major venture capital firms such as Sequoia Capital and Andreessen Horowitz.
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Last month, Kalshi completed a $300 million funding round, boosting its valuation to $5 billion.
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In 2024, Donald Trump Jr. joined the company as a strategic advisor, drawing additional attention.
According to Cryptopolitan, both platforms have recently experienced significant increases in betting activity.
Wall Street and Sports World Take Notice
Major financial institutions and gambling companies are closely monitoring the situation. Polymarket CEO Shayne Coplan noted that with DraftKings entering the prediction market, the platform could serve as a central hub. On the same day, the National Hockey League announced multi-year deals with both Kalshi and Polymarket, becoming the first major American sports league to partner with prediction market platforms.
Regulatory Uncertainty
Prediction markets still face unclear regulations. While federal regulators have allowed Kalshi to open new markets, state gambling authorities have challenged this in court. Issues related to market manipulation and insider trading remain unresolved.
Conclusion
The rapid growth of Polymarket and Kalshi underscores the increasing importance of prediction markets in the financial ecosystem. By allowing investors to speculate on future events, these platforms create a new investment space beyond traditional financial instruments. Strong investor backing and expanding user bases highlight the sector’s potential.
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