New findings indicate that a tiny fraction of traders are reaping the majority of the benefits 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 0.55% of profitable maker wallets and 0.26% of winning taker wallets capturing approximately 50% of gains in key markets between December 2025 and February 2026. This translates to around $8 million out of $16 million in profits. The data supports previous research suggesting that a small minority of traders drive price discovery, with about 3% of Polymarket traders responsible for most price movements.
The report highlights that this concentration does not necessarily imply wrongdoing, but rather that some traders have significant advantages, including better capitalization, infrastructure, and execution strategies. 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. The findings underscore the need for market surveillance and highlight the importance of understanding the dynamics at play in prediction markets.