TechFlow news, on December 26, according to The Block, prediction markets are experiencing record growth in 2025, with Kalshi and Polymarket emerging as industry leaders, achieving valuations of $11 billion and $9 billion respectively. Kalshi raised $1 billion in funding led by Sequoia Capital and CapitalG, while ICE, the parent company of the New York Stock Exchange, invested $2 billion in Polymarket. Both companies have established partnerships with mainstream brands including CNBC, CNN, Yahoo Finance, and UFC.
Meanwhile, traditional financial platforms such as Robinhood and Coinbase have also entered the prediction market space, expanding the user base. Despite rapid growth, the industry still faces skepticism over the authenticity of trading volumes and regulatory challenges, particularly in controversial areas like sports betting and "mention markets." With the 2026 U.S. midterm elections approaching, these platforms will face a critical test period.
