Gold prices just lower; monthly gains on track
Polymarket, a prediction market platform, reported a significant increase in monthly active traders, reaching 450,000 in January, a 91% surge from 235,000 in October 2024.
The Block reported that the platform saw a consistent rise in active traders through the fourth quarter of 2024, with figures climbing to 300,000 in November and 350,000 in December.
Despite a decrease in trading volume from November’s peak of $2.6 billion to $1.23 billion in January, the number of active traders continued to grow. The sustained interest in the app indicates that users remain engaged with the platform even after the U.S. elections, suggesting a potential expansion of market interest beyond political events.
Open interest, which reached a high of $500 million on November 5, 2024, amid the election frenzy, has since leveled off at approximately $100 million. While political markets, especially those relating to the Trump presidency, continue to attract attention, Polymarket has broadened its offerings to include sports betting markets such as the Super Bowl, NBA Championship, and Champions League.
The growth of Polymarket comes at a time of increased regulatory attention in the prediction market sector. The Commodity Futures Trading Commission (CFTC) has been investigating the platform, which led to a subpoena issued to Coinbase (NASDAQ:COIN) for customer information. This regulatory scrutiny is an important factor that could influence Polymarket’s trajectory, especially as speculation about a potential token launch by the platform gains momentum.
Amidst regulatory changes and the growing number of active traders, there is speculation among market participants about the possibility of Polymarket issuing its own token. Although there has been no official announcement, the evolving regulatory landscape in the United States could pave the way for such a development.
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