Research suggests that a small group of traders may be driving the market, but an even smaller group is reaping most of the benefits. According to a report by blockchain analytics firm Solidus Labs, profit concentration on Polymarket is extreme, with less than 1% of wallets capturing around half of all gains in key markets. Between December 2025 and February 2026, just 0.55% of profitable maker wallets captured 50% of gains, while 0.26% of winning taker wallets accounted for nearly the same share, resulting in roughly $8 million of about $16 million in profits. This data supports previous findings that a small minority of traders drives most price discovery, with about 3% of Polymarket traders responsible for this movement.
The report highlights that this concentration of profits does not necessarily imply wrongdoing, but rather that some traders have significant advantages, including better capitalization, infrastructure, and execution strategies. It also notes signs of wash trading, with around 15% of volume in some markets showing patterns consistent with self-trading or economically neutral positions.
Solidus Labs argues that this imbalance suggests a structural divide between a small group of traders operating with significant advantages and the broader base of participants, with the former having access to capital depth, infrastructure, and execution strategies that are out of reach for most users.