The landscape of prediction markets is undergoing a significant shift, evolving from occasional bets on major events to platforms characterized by daily user engagement, as highlighted in a report by Bitget Wallet in collaboration with Polymarket. In March, Polymarket's trading volume reached $25.7 billion, but the report underscores a more profound change in user behavior. Based on data from 1.29 million wallets in the first quarter, it's clear that users are returning more frequently and participating across a broader spectrum of markets, including cryptocurrency, sports, and politics. The data suggests that growth is driven by the frequency of trades rather than their size, with over 82% of users trading less than $10,000 during the quarter, indicating the market's continued dominance by retail participants.
Instead of making large, infrequent bets, users are now engaging in smaller, more regular trades. According to Alvin Kan, Chief Operating Officer of Bitget Wallet, 'Prediction markets are transitioning from being about capital to consistent, repeated actions. What we're witnessing is a behavioral shift: the market is scaling with more daily interactions, not larger trades.' Cryptocurrency remains the primary entry point for new users, accounting for nearly 40% of initial activity due to its continuous trading and familiar price movements, making it a natural starting point.
However, as users become more active, their participation shifts towards markets tied to real-world events. The report frames this evolution as a structural change, where prediction markets are no longer driven solely by spikes around major events like elections but are becoming continuous systems where users regularly return to track and respond to changing probabilities. Elden Mirzoian, Director of Growth and Partnerships at Polymarket, notes, 'As prediction markets evolve into core financial infrastructure, distribution becomes as crucial as the underlying market itself.
We're seeing a shift from episodic trading to more continuous engagement.' This shift is also altering how these markets are utilized, with prices increasingly reflecting real-time expectations around macroeconomic trends, politics, and culture, and beginning to appear alongside traditional data sources in media and financial analysis. The growth has been rapid, with monthly trading volume climbing from about $1.2 billion in 2025 to over $20 billion in early 2026, while active wallets have more than tripled in six months. Industry projections cited in the report estimate the market could reach $240 billion in volume this year, with a longer-term trajectory towards $1 trillion.
As participation increases, the focus is shifting towards access and usability, with wallets emerging as key entry points, helping users discover markets and interact with them in real-time.