Analysis: The market size is predicted to reach $95.5 billion by 2035, with a projected compound annual growth rate of nearly 47%.

December 29, 2025 — Prediction markets are hitting a pivotal inflection point. Weekly trading volume across top platforms including Polymarket, Kalshi, Limitless, and Myriad has topped $2 billion, shifting from a period of regulatory uncertainty to becoming a critical new infrastructure layer in crypto and financial markets. Going back to late 2024, the U.S. presidential election marked a turning point for the space. Polymarket correctly called Trump’s victory, driving record trading volume and influence — but also drawing regulatory scrutiny, including a French ban and an FBI investigation. Later, the U.S. Commodity Futures Trading Commission (CFTC) reversed course, openly reevaluating its regulatory framework that had created a “legal uncertainty trap” and clearing hurdles for platforms like Kalshi. By early 2025, prediction markets had gone mainstream, with key milestones including: - Robinhood x Kalshi launch of an NCAA March Madness prediction market - Polymarket’s $112M acquisition of CFTC-licensed exchange QCX, clearing its U.S. re-entry path - NYSE parent ICE’s $2B investment, lifting Polymarket’s valuation to $90B - Trump Media Group + Crypto.com launch of Truth Predict - Partnerships between Kalshi and CNN, CNBC, Google, the NHL, and others Industry forecasts project the prediction market to hit $95.5B by 2035, with a compound annual growth rate (CAGR) of nearly 47%. Emerging players like Limitless and Myriad have seen multi-fold trading volume growth in just months. While regulatory pushback persists in states like Texas and New York, the industry’s expansion remains unstoppable. Industry insiders note the prediction market mirrors DeFi’s early days, with its surrounding ecosystem — including trading terminals, data aggregation tools, and collateral applications — taking shape.