A recent study by blockchain analytics firm Solidus Labs has found that a minuscule group of traders on Polymarket is reaping the majority of the profits, with less than 1% of wallets accounting for roughly half of all gains in key markets. The report, which analyzed data from Polymarket's politics markets between December 2025 and February 2026, discovered that a mere 0.55% of profitable maker wallets and 0.26% of winning taker wallets captured approximately 50% of the gains, translating to around $8 million out of $16 million in profits.
This phenomenon is consistent with previous academic research, which showed that a small minority of traders drives most price discovery on the platform. The study's findings suggest a significant disparity between a small group of sophisticated traders and the broader base of participants, with the former operating with considerable advantages in terms of capital, infrastructure, and execution strategies.
Furthermore, the report identified 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 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.