Research suggests 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 in key markets. A recent report by blockchain analytics firm Solidus Labs found that across Polymarket's politics markets between December 2025 and February 2026, a mere 0.55% of profitable maker wallets captured 50% of gains, while 0.26% of winning taker wallets accounted for nearly the same share, translating to approximately $8 million in profits. This data reinforces previous academic findings that a small minority of traders drive price discovery, with around 3% of Polymarket traders responsible for most price movements. The significant disparity in profit distribution raises concerns about a structural divide between a small group of sophisticated traders and the broader base of participants.
The report also highlights 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 monitor and prevent manipulative practices.