The market is projected to see record growth in 2025, with the 2026 midterm elections potentially proving crucial.

According to Odaily Planet Daily, 2025 saw the largest prediction market in history, with Polymarket and Kalshi becoming industry leaders amid a massive influx of capital, increased media attention, and multi-billion dollar valuations. With the 2026 US midterm elections approaching, the market widely believes this event could become a major trading opportunity similar to the 2024 presidential election, but both companies will face the crucial test of proving their prediction value on a large scale. The report points out that despite rapid growth in trading volume and user attention, the industry still faces controversies such as the authenticity of trading volume, limited revenue scale, and unclear regulatory boundaries. Meanwhile, large platforms such as Robinhood and Coinbase have entered the prediction market field, further expanding their user base, but new contract formats such as sports betting and mention markets also raise potential regulatory and market manipulation risks. (The Block)