The total value locked (TVL) in decentralized prediction markets has reached a record $148 million, according to data from DefiLlama. The sector has surged over 50% since mid-August, when it dipped to $93 million due to bearish sentiment in the broader crypto market.
The increase is mainly driven by Polymarket, which accounts for more than 80% of the total, with a record $121 million in TVL. Total deposits on the largest DeFi betting platform have surged over 1,200% since the beginning of the year.
Politics is the hottest topic on most prediction platforms, including on Polymarket, with the upcoming US election attracting more investors. The Tuesday debate between former President Donald Trump and Kamala Harris propelled TVL figures to fresh records.
On Polymarket, out of the top eight markets by liquidity, six are related to the US elections, including the largest one with $871 million worth of bets.
Another fast-growing prediction platform is Predict Fun. It launched earlier in September and already has over $1.3 million in TVL, joining the top 10 prediction apps by total liquidity. The platform leverages Blast, a layer 2 scaling solution for Ethereum, and offers a similar experience to Polymarket. Its markets are also dominated by politics.
Azuro, the second-largest DeFi app in the prediction market sector with $7.6 million in TVL, has been recovering from August lows, though it remains below the record $10 million set in late April. Azuro offers blockchain infrastructure for multiple prediction and gaming apps.
The success of Polymarket is turning investors and developers’ attention to this niche. On September 9, Decrypt, a leading crypto news platform, announced that its parent company was building an on-chain prediction market and digital media ecosystem called MYRIAD.
The upcoming platform will likely put great emphasis on crypto topics besides politics. In addition to crypto bets, users will be able to complete quests and earn rewards.
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