a16z Crypto: Prediction market weekly volume hits record $14.4B

Weekly trading volume in prediction markets surpassed $14.4 billion for the first time last week, setting a new all-time high, according to a16z Crypto, citing data from Artemis. The figure is up from $5 billion to $6 billion at the start of the year and approximately $10 billion a week ago. Total platform volume has increased more than tenfold from a year ago, while open interest reached $1.6 billion, marking a record high for the third consecutive week. a16z Crypto explained that open interest only grows when new positions are opened faster than existing ones are closed, suggesting an increasing flow of capital into these markets. While trading related to the World Cup has garnered significant attention, non-sports categories such as politics, economics, geopolitics, and current events have also seen a rise in volume. Last week, the combined trading volume on Kalshi and Polymarket reached $3.6 billion.