Deep Dive into 290,000 Market Data Points: Revealing 6 Truths About Polymarket LiquidityAuthor: Frank, PANews
Previously, PANews conducted in-depth research on strategies for prediction markets, one of the key findings being that: whether many arbitrage strategies can succeed may not be limited by the mathematical formulas of the strategies, but rather by the liquidity depth of the prediction market itself.
Recently, after Polymarket announced the launch of the US real estate prediction market, this phenomenon seems to have become even more apparent. Since its launch, the daily trading volume of this series of markets has only been a few hundred dollars, far from the lively activity expected, and much less than the discussion on social media. This seems to be a humorous and abnormal situation, so we may need to conduct a comprehensive investigation into the liquidity of prediction markets to reveal some truths about liquidity in prediction markets.
PANews retrieved historical data from 295,000 markets on Polymarket and arrived at the following insights:
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