Recent findings suggest that a small group of traders is dominating the profits on Polymarket, with fewer than 1% of wallets accounting for roughly half of all gains in key markets. According to a report by blockchain analytics firm Solidus Labs, this concentration of wealth is evident across Polymarket's politics markets between December 2025 and February 2026. The data shows that just 0.55% of profitable maker wallets and 0.26% of winning taker wallets captured 50% of gains, resulting in approximately $8 million in profits for each group. This discovery builds upon existing research that found about 3% of Polymarket traders drive most price discovery.
The report highlights that this imbalance may be due to a structural divide between a small group of sophisticated traders and the broader base of participants, with the former operating with significant advantages. The study also identifies signs of wash trading, with around 15% of volume in some markets displaying 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 these findings with a critical perspective, considering the potential biases of the research firm.