New findings indicate that a minuscule group of traders is generating substantial profits on Polymarket, with less than 1% of wallets capturing approximately half of the total gains in key markets. A report by blockchain analytics firm Solidus Labs discovered that, between December 2025 and February 2026, a mere 0.55% of profitable maker wallets and 0.26% of winning taker wallets accounted for roughly 50% of gains, translating to around $8 million in profits.
This data supports existing research suggesting that a small minority of traders drives price discovery, with about 3% of Polymarket traders responsible for most market movements. The report highlights a significant imbalance between a small group of sophisticated traders and the broader base of participants, with the former operating with considerable advantages. Furthermore, the study identified signs of wash trading, with approximately 15% of volume in some markets exhibiting patterns consistent with self-trading or economically neutral positions.
The findings have implications for market surveillance and the need for infrastructure to monitor and mitigate manipulative practices.