US midterm elections to be key test for rapidly growing prediction markets

Next year's U.S. midterm elections will serve as a major test to prove the value of the prediction market sector, according to an analysis by The Block. The publication highlighted the rapid growth in the space this year, with platforms Polymarket and Kalshi achieving valuations of $9 billion and $11 billion, respectively. The Block suggested that the upcoming elections could be a turning point for properly assessing the value of these markets. Separately, Leo Chan, co-founder of Sportstensor, commented that the core value of prediction markets lies in their function as a collective intelligence data infrastructure. He added that many financial institutions view these platforms as a form of data collection infrastructure.