In just over three weeks, the trading volume on decentralized betting platform Polymarket went from zero to almost $3 million.
As of Monday, Polymarket’s “Will Trump win the 2020 U.S. presidential election?” had over $2.8 million worth of bets placed, with each bet (for possible answers “yes” or “no”) costing less than a dollar. The platform allows users to place crypto bets on highly-debated current events and public topics including politics, pop culture, business and health, according to its website.
Polymarket is a non-custodial platform, meaning it does not hold or store user-funds, and bets can be placed in the dollar-backed stablecoin USDC.
Prediction markets, where users can bet on the outcome of future events, are a key application of decentralized finance (DeFi), which allows users to conduct financial transactions on a blockchain without a middleman.