Research has shown that a small minority of traders has a significant impact on market prices, but a new study reveals that an even smaller group is accumulating the majority of the profits. According to a report by blockchain analytics firm Solidus Labs, less than 1% of wallets on Polymarket are capturing roughly half of all gains in key markets. Between December 2025 and February 2026, just 0.55% of profitable maker wallets and 0.26% of winning taker wallets accounted for nearly half of the profits, with each group accruing around $8 million out of a total of $16 million.
This data supports previous findings that a small group of traders drives most price discovery, with around 3% of Polymarket traders responsible for the majority of market movements. While this concentration of profits does not necessarily imply any wrongdoing, it does suggest a significant divide between a small group of sophisticated traders and the broader base of participants. The report notes that the scale of this imbalance is likely due to the advantages held by this small group, including greater capital depth, better infrastructure, and more effective execution strategies.
Additionally, the study identifies signs of wash trading, with around 15% of volume in some markets showing patterns consistent with self-trading or economically neutral positions. This type of trading has no equivalent in traditional finance and may be driven by incentive farming rather than pure manipulation. The findings of this report are significant, but it is worth noting that Solidus Labs is not a neutral observer, as the firm sells surveillance platforms and has a vested interest in highlighting the need for market surveillance infrastructure.