New findings indicate that a tiny fraction of traders are reaping the majority of the rewards on Polymarket, with less than 1% of wallets accounting for roughly half of all profits. According to a report by blockchain analytics firm Solidus Labs, this profit concentration is extreme, with a small group of traders dominating the market.
The report analyzed Polymarket's politics markets between December 2025 and February 2026, finding that just 0.55% of profitable maker wallets captured 50% of gains, while 0.26% of winning taker wallets accounted for nearly the same share. This translates to approximately $8 million in profits for each of these tiny cohorts, out of a total of around $16 million.
The data supports previous academic research suggesting that a small minority of traders drives price discovery, with the current findings highlighting a notable disparity between a select group of sophisticated traders and the broader base of participants. The report attributes this imbalance to factors such as capital depth, infrastructure, and execution strategies, which are out of reach for most users.
Additionally, the study identifies signs of wash trading, with around 15% of volume in some markets exhibiting patterns consistent with self-trading or economically neutral positions. While some of this activity may be driven by incentive farming, it underscores the need for market surveillance infrastructure to ensure a fair and transparent trading environment.