Hassan Maishera
One of the most important sectors in the Web3 ecosystem is the crypto prediction markets. Crypto prediction markets allow users to earn money by predicting random crypto-related events. They even extend beyond crypto-related events, allowing users to predict sports and other real-world events.
In a recent report by KuCoin Ventures, the firm noted that the sector now records over $2 billion in weekly trading volume. While public attention has largely focused on platforms like Polymarket and Kalshi, the report argues that the real value lies deeper, in the infrastructure that underpins the entire ecosystem.
Opportunities in the Crypto Prediction Market Lie in Infrastructure
The KuCoin Ventures report provided users with a comprehensive framework for understanding how prediction markets are evolving from speculative tools into a new layer of financial infrastructure.
According to the report, Polymarke (which recently secured a $2 billion investment from Intercontinental Exchange (ICE) at an $8 billion valuation) and Kalshi (now valued at $5 billion) dominate current trading activity.
However, their success has exposed some key challenges in the ecosystem, including fragmented liquidity, oracle disputes, and regulatory ambiguity. Last month, Polymarket hosted over 35,500 new markets, its highest monthly total to date, reflecting an explosion of user participation.
KuCoin Ventures highlighted that during that period, the “Zelenskyy Suit” and Venezuela’s contested election market highlighted fundamental weaknesses in how market outcomes are governed and resolved. Liquidity remains highly concentrated in a small set of “headline” events, leaving thousands of smaller markets underutilized and volatile.
For this reason, the report suggests that the real opportunity in this field is in developing the infrastructure that enables the sector to scale safely and efficiently. This includes next-generation oracle systems, liquidity protocols to support long-tail markets, compliance tooling for jurisdiction-specific onboarding, and AI-powered agents to assist in forecasting and analysis.
KuCoin Ventures added that,
The prediction market sector has crossed into multi-billion-dollar territory, but its long-term viability hinges on solving governance, liquidity, and compliance at the infrastructure level.
According to KuCoin Ventures, these building blocks are often overlooked in public narratives but will ultimately play a crucial role in whether prediction markets remain a niche or emerge as a core layer of global financial and informational systems.
The full report, authored by KuCoin Ventures analysts Claude, Mia, and Oasis, is available in Bahasa Indonesia. It reflects the firm’s ongoing commitment to research-driven investment in Web3, AI, and financial infrastructure.
