Research has long suggested that a small group of traders drives the market, but new findings indicate that an even smaller cohort is reaping most of the financial rewards. According to a report by blockchain analytics firm Solidus Labs, profit distribution on Polymarket is highly skewed, with under 1% of wallets accounting for roughly half of all gains in key markets. Between December 2025 and February 2026, a mere 0.55% of profitable maker wallets and 0.26% of winning taker wallets captured around 50% of the profits, translating to approximately $8 million out of $16 million in total gains.
This data supports previous academic research, which found that about 3% of Polymarket traders are responsible for most price movements. The significant disparity between the profits of a small group of traders and the broader participant base highlights a structural divide, with the former often possessing greater capital, better infrastructure, and more effective execution strategies. The report also notes 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.
Solidus Labs, which sells a surveillance platform, argues that such infrastructure is essential for maintaining fair and transparent markets.