The head of Paradigm Research has stated that there is "water in the volume" of Polymarket trades, while the community has accused Paradigm of smearing a competitor.

On December 9, Paradigm’s Head of Data @notnotstorm claimed that prediction platform Polymarket has a double-counting issue in its trading volume, inflating its transaction volume data. This comment sparked widespread criticism in the crypto community, which accused Paradigm of amplifying the controversy and framing Polymarket negatively—given Paradigm’s investment in Kalshi, a direct competitor. Bankr Co-Founder @deployer pushed back, noting the "double-counted" volume issue stems from a third-party dashboard’s data collection method, not any flaw in Polymarket’s own data. He emphasized Polymarket’s transaction volume records have no fundamental errors. Dragonfly’s Head of Data @hildobby also chimed in, saying: “At least as of 2024, all reputable data dashboards have already addressed this.”