A recent study by blockchain analytics firm Solidus Labs has shed light on the extreme profit concentration on Polymarket, with less than 1% of wallets accounting for approximately half of all gains in key markets. The report, which analyzed data from Polymarket's politics markets between December 2025 and February 2026, found that a mere 0.55% of profitable maker wallets captured 50% of gains, while 0.26% of winning taker wallets accounted for nearly the same share. This translates to roughly $8 million of about $16 million in profits. The findings support previous academic research suggesting that a small minority of traders drives price discovery on Polymarket.
The report highlights the significant advantages that this small group of traders possesses, including capital depth, infrastructure, and execution strategies, which are out of reach for most users. Additionally, the study identifies signs of wash trading, with approximately 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 perspective, considering the firm's vested interest in promoting its surveillance platform.