- Polymarket, a cryptocurrency prediction market, has seen a surge in activity due to the upcoming US election.
- Despite dApps on the network performing well, activity across Polygon has decreased.
A popular dApp on the Polygon network, known as Polymarket, has seen significant growth over the past few days. For context, Polymarket is a prediction market that allows users to bet on real-world events using cryptocurrency.
Place your bet
Fueled by speculation surrounding the 2024 US presidential election, prediction platform Polymarket has seen record monthly levels in both volume and active traders.
Source: Sand Analysis
In fact, according to recent data, Polymarket recorded $63 million in trading volume in May from over 13,597 traders. Throughout 2024, monthly volume fluctuated widely, from $38.9 million in April to a peak of $63 million in May.
This represents a significant increase compared to Polymarket’s trading volume each month in 2023. These new records highlight the increased interest and activity on Polymarket, especially in the five most liquid markets on the platform. All of this has to do with the American political system.
Speculators bet Polymarket a total of $234.1 million across these five markets. These bets include predictions about who will win the 2024 presidential election, the 2024 popular vote winner, the Democratic candidate, the Republican vice presidential candidate, and the Electoral College odds.
A massive bet worth $143.8 million is focused on predicting the winner of the presidential election.
Polymarket’s popularity could also boost Polygon’s health and bring more users to the network in the future.
Source: X
How’s Polygon doing?
However, at the time of writing, things are not looking very positive for Polygon. In terms of daily transactions on the network, Polygon has recorded a significant decline.
AMBCrypto’s analysis of Artemis data found that the number of transactions taking place on the network decreased from 4.5 million to 3.5 million. Additionally, the number of daily active addresses on the network decreased from 1.4 million to 1.2 million.
Source: Artemis
MATIC wasn’t having a good time either. In the past week alone, altcoin prices have fallen 3.38%. At press time, MATIC was trading at $0.697.
Realistic or not, the market cap of MATIC in ETH terms is:
Source: Santiment