Recent findings indicate that a minuscule group of traders is dominating the profits on Polymarket, with less than 1% of wallets accounting for roughly half of all gains in key markets. A report by blockchain analytics firm Solidus Labs found that between December 2025 and February 2026, a mere 0.55% of profitable maker wallets and 0.26% of winning taker wallets captured approximately 50% of gains in Polymarket's politics markets. This translates to around $8 million out of $16 million in profits.
The study also notes that the data reflects a broader trend, where a small minority of traders drives price discovery, while an even smaller group reaps the majority of the rewards. The report suggests that this imbalance may be due to certain traders having significant advantages, including greater capital, better infrastructure, and more effective execution strategies.
Furthermore, the study detected signs of wash trading, with about 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 highlights the need for surveillance infrastructure to monitor and prevent market manipulation.