Research from blockchain analytics firm Solidus Labs has uncovered a striking disparity in profit distribution on Polymarket, with less than 1% of wallets accounting for approximately half of all gains. This phenomenon is observed in key markets, where a small group of traders appears to be driving the majority of profits.
Between December 2025 and February 2026, a mere 0.55% of profitable maker wallets and 0.26% of winning taker wallets captured around 50% of gains, translating to roughly $8 million out of $16 million in profits. This finding builds upon existing academic work, which suggests that a small minority of traders is responsible for most price movements. The report highlights that this concentration of profits does not necessarily imply wrongdoing, but rather that some traders possess significant advantages, including greater sophistication, better capitalization, and faster access to information.
However, the scale of the imbalance raises concerns about a structural divide between a small group of traders operating with substantial advantages and the broader base of participants. The study also identifies signs of wash trading, with around 15% of volume in some markets exhibiting patterns consistent with self-trading or economically neutral positions. Solidus Labs' report relies on verifiable on-chain data, but its findings should be considered in the context of the firm's sales pitch for its surveillance platform, HALO.