Polymarket faces struggles in 2025 after booming 2024

Source Cryptopolitan

American-based prediction platform Polymarket has seen less activity just a few weeks into 2025 despite its massive following in 2024. The prediction platform typically requires users to place crypto bets on ‘yes’ or ‘no’ answers to a presented question.

Just before the November 5 election, the platform saw a significant surge in bets based on who would win the election, suggesting that the election results were a far more exciting topic for the crypto community than the topics it’s currently presenting.

Polymarket’s trading volume slumps by $2 billion in January from November

According to Dune Analytics, prediction platform Polymarket saw $2.3 billion and $2.6 billion in trading volume in October and November, respectively. 

The surge in trading volume can be attributed to the rise in bets on predicting the outcome of the November 5  US election. November’s 2024 trading volume was even more than 37,700% higher than the $6.8 million volume in November 2023, hinting at how election results were important to crypto investors.

Despite a surge in activity in November, the market has struggled to maintain the same activity level in 2025. Trading volume has dwindled in the first few weeks of 2025 to only $515 million from $1.9 billion in December.

Moreover, open interest on Polymarket slumped by 77% between November 6 and January 13.

As of January 14, the most trending markets included predictions about how many times Elon Musk would post on X this week, whether New York City would repeal its controversial congestion pricing policy by summer, or if Donald Trump would attempt to purchase Greenland.

Polymarket is still struggling with restrictions, user criticism, and market competition

As much as Polymarket saw its trading volume rise in November, its popularity did invite regulatory scrutiny. In November, the US Federal Bureau of Investigation searched Shayne Coplan, Polymarket’s CEO, to determine whether the market continued to comply with the ban imposed on American markets in 2022.

Moreover, Singapore restricted access to the prediction platform this January, joining France and Taiwan.

Some of the platform’s users have even voiced concerns over some of the market’s bets, particularly those centered around LA wildfires. Some have claimed the platform was trying to profit from a national disaster, inviting criticism from concerned crypto investors.

Not to mention, the platform still has to fight off top competitor Kalshi after the firm won the court’s favor in September, allowing American users to bet on its platform.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
EUR/USD gains on delay in Trump’s reciprocal tariffs, optimism over Russia-Ukraine peaceEUR/USD extends its winning streak for the fourth trading session on Friday.
Author  FXStreet
10 hours ago
EUR/USD extends its winning streak for the fourth trading session on Friday.
placeholder
Gold on its way to hit another fresh all-time highGold’s price (XAU/USD) edges higher, trading at around $2,935 at the time of writing on Friday, and holds good cards to close out this week with a new all-time high and solid gains.
Author  FXStreet
11 hours ago
Gold’s price (XAU/USD) edges higher, trading at around $2,935 at the time of writing on Friday, and holds good cards to close out this week with a new all-time high and solid gains.
placeholder
Silver price today: Silver rises, according to FXStreet dataSilver prices (XAG/USD) rose on Friday, according to FXStreet data.
Author  FXStreet
11 hours ago
Silver prices (XAG/USD) rose on Friday, according to FXStreet data.
placeholder
Crude Oil price today: WTI price bullish, according to FXStreet dataWest Texas Intermediate (WTI) Oil price advances on Friday, according to FXStreet data.
Author  Mitrade
11 hours ago
West Texas Intermediate (WTI) Oil price advances on Friday, according to FXStreet data.
placeholder
US Dollar Index holds position above 107.00 ahead of Retail Sales figuresThe US Dollar Index (DXY), which tracks the US Dollar's (USD) performance against six major currencies, remains stable after losses in the previous session.
Author  FXStreet
12 hours ago
The US Dollar Index (DXY), which tracks the US Dollar's (USD) performance against six major currencies, remains stable after losses in the previous session.
goTop
quote