Blockchain technology is transforming prediction markets, giving everyday users new power and opportunities.

Prediction markets are undergoing a significant transformation as they move from Web2 to Web3 models, with platforms such as Polymarket, Kalshi, and

at the forefront, utilizing blockchain to reshape the way people and organizations predict and wager on actual events. This evolution is propelled by a mix of venture capital funding, shifting regulations, and the unique strengths of decentralized systems, helping Web3-based prediction markets gain momentum in this fast-growing industry.

Polymarket has recently become a standout competitor. In August alone, it recorded more than $644 million in traded volume, highlighting its expanding reach. Operating on

and Polygon Layer 2, Polymarket lets users place bets on real-world outcomes via stablecoins, and its decentralized design offers superior user participation and faster transactions compared to classic Web2 betting sites. About 40% of the trading activity on Polymarket is related to sports, while the rest goes to bets on cryptocurrency prices.

Kalshi, a prediction market rooted in Web2, drew attention in 2024 when it prevailed in a lawsuit against the Commodity Futures Trading Commission, earning approval to provide regulated political wagering contracts. Even though Kalshi isn’t part of the Web3 ecosystem, its regulatory success has set a benchmark for similar platforms striving for legal recognition.

At the same time, Myriad, a decentralized protocol for prediction markets, is integrating itself with Web3 social and media platforms. Myriad enables users to speculate on real-world happenings while engaging with online content through built-in plugins. The platform recently surpassed $10 million in US dollar coin trading volume. Its CEO, Loxley Fernandes, highlights blockchain’s ability to empower users to control both their data and the creation of value. “Prediction markets return the power to people to determine what is true and what is valuable,” he states.

Web3 prediction markets attract users due to their composability, openness, and streamlined design. Unlike Web2 sites, which operate in isolation and split liquidity, Web3 prediction markets can be accessed and combined across multiple applications and blockchains. This interconnectedness leads to larger liquidity pools and more reliable predictions, as traders from different services participate in the same market.

From an investment perspective, the outlook for Web3 prediction markets is promising, with the sector expected to reach $95.5 billion by 2035. The adoption of stablecoins is also projected to hit $2 trillion by 2028, further strengthening the infrastructure behind these platforms. Venture capital is flowing in, with investors such as Verda Ventures and Sequoia supporting projects that blend regulatory approval with innovative blockchain solutions.

Ethereum serves as the backbone for many of these prediction markets and remains a popular topic for price speculation. Some analysts believe Ethereum could reach $5,000 or even go beyond $9,889 by 2030. This positive outlook is based on Ethereum’s critical role in DeFi, its move to proof-of-stake, and the implementation of Layer 2 solutions that improve speed and cut costs. User activity on platforms like Myriad reflects this bullish sentiment, indicating strong confidence in Ethereum’s potential to set new price records.

Although enthusiasm for Web3-based prediction markets is rising, several obstacles persist. Unclear regulations, competition from other Layer 1 blockchains, and larger economic shifts present hurdles to sustainable expansion. Nevertheless, the growing appetite for decentralized tools, tokenized assets, and instant economic forecasts is likely to keep driving innovation and wider use in this space.

To conclude, Web3 is increasingly shaping the landscape of prediction markets. Platforms like Polymarket, Kalshi, and Myriad are pioneering a new era where blockchain brings greater transparency, efficiency, and user empowerment to betting systems. As the sector matures, the blend of decentralized technology and prediction markets could unlock fresh opportunities for both financial growth and the exchange of information.