New findings from blockchain analytics firm Solidus Labs indicate that a minuscule group of traders is reaping the majority of the rewards on Polymarket, with less than 1% of wallets accounting for approximately half of all gains in key markets. The report, which analyzed Polymarket's politics markets between December 2025 and February 2026, found that a mere 0.55% of profitable maker wallets and 0.26% of winning taker wallets captured around 50% of the profits, translating to roughly $8 million out of $16 million in total gains.
This discovery reinforces previous research suggesting that a small minority of traders drives price movements, with a London Business School and Yale paper finding that about 3% of Polymarket traders are responsible for most price discovery. The significant imbalance 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 volume may be attributed to incentive farming, it is essential to approach the data with a critical eye, considering the potential motivations behind the report.