Prediction markets have seen a substantial surge in volume over the past week, reaching a record-breaking $5.37 billion. According to data from CoinMarketCap, Polymarket and Kalshi led the charge, accounting for the largest share of the total volume.
The notional volume of prediction markets rose by 0.31% on average, with some platforms experiencing significant increases in activity. For example, Predict saw a massive jump of over 19%, while ForecastEx suffered a decline of 48.84%. Despite this variation, traders are increasingly relying on these markets to gauge market sentiment and make informed decisions.
One notable trend is the growing bearishness among traders. On Polymarket, 65% of participants are predicting that Bitcoin will drop below $50K in 2026, while 78% believe Ethereum will fall below $1.50K. These predictions reflect a widespread pessimism about the crypto market's prospects.