The Majority of Polymarket Crypto Wallets Failed to Make a Profit
Recent Data from Layerhub, an on-Chain Analytics platform, reveals that a significant number of users on the Decentralized prediction Market Polymarket did not see any profits from their activities. Out of the 171,113 active Crypto Wallets on the platform, a staggering 87.3% (149,383 wallets) did not achieve positive returns.
Only 12.7% of the wallets, totaling 21,730, were able to record profits. This data sheds light on the challenges faced by users when engaging in prediction market activities.
Profitable Wallets Earn Modest Returns
Among the wallets that were able to generate profits, the earnings were relatively modest. While approximately 2,138 wallets earned more than $1,000, the majority of profitable wallets saw gains of less than $100. Another 7,400 wallets fell in the $100 to $1,000 profit range, highlighting the rarity of significant returns on the platform.
Platform Activity and Trends
Polymarket allows users to Bet on real-world events using Cryptocurrency, attracting around 10.8 million Betting trades. The platform experienced a Surge in activity from October 6 to 8, with over 300,000 trades daily. Global events like geopolitical tensions and the anticipation of the U.S. presidential election contributed to this increased activity.
It's worth noting that not all Crypto wallets on the platform are unique to individual users. Some traders employ multiple wallets to diversify their bets, pursuing high-risk Strategies in pursuit of profits. Data indicates that nearly 25,000 wallets have engaged in more than 50 trades, while around 32,000 wallets completed 20 to 50 trades. Conversely, about 58,000 wallets participated in only one to five trades, indicating infrequent engagement by most users.
As of October 9, Polymarket's open interest, representing the total value of active futures Contracts, reached $161.1 million. The platform gained attention when Tesla CEO Elon Musk suggested that Polymarket might provide more accurate predictions for the 2024 U.S. presidential election than traditional polling methods.
Bloomberg Collaborates with Polymarket
Bloomberg LP, a leading financial data and news provider, is set to integrate election Odds data from Polymarket into its Terminal service. Polymarket, operating on the Polygon network, has emerged as a key platform for real-time election odds tracking.
The platform enables users to bet on various event outcomes, leveraging transparent on-chain data and Smart Contracts for trade execution and payouts. Recently, a bipartisan group of U.S. Senators and House representatives called for a ban on betting activities related to the upcoming 2024 presidential election. Concerns were raised about potential influence from wealthy individuals on election outcomes.
Polymarket CEO Shayne Coplan hinted at the possibility of introducing commission fees to enhance the company's revenue. While focusing on Marketplace expansion and user Experience improvements, the company is exploring different monetization strategies, including the introduction of platform fees.
