Odaily Planet Daily reports that Citizens Bank in the United States recently released a new report indicating that prediction markets are rapidly growing. The current annual revenue in the industry has exceeded $3 billion and is expected to reach $10 billion by 2030, becoming an emerging asset class.
The report shows that trading volume in prediction markets continues to rise. In January, market transaction volume increased by over 40% compared to December, and February maintained similar levels despite the typical decline after the end of the traditional sports season. Analysts believe this trend reflects the shift of prediction markets from niche betting tools to mature financial markets.
Citizens Bank believes that the key factors driving industry growth include increasing trading volume, improved market structure, and initial participation by institutional investors. Some institutions have already begun entering the market as data users and liquidity providers, laying the foundation for broader institutional adoption.
Prediction markets allow traders to price and hedge risks related to discrete events such as election outcomes, interest rate decisions, or merger approvals. Compared to proxy tools like index futures or options, they can reduce basis risk and provide real-time probability signals.
Analysts point out that the development path of prediction markets is similar to early derivatives markets and the digital asset industry, gradually transitioning from retail-led liquidity to market makers and institutional participation. Currently, representative platforms include the regulated event contract exchange Kalshi and the decentralized prediction market Polymarket. The industry as a whole is gradually moving toward mainstream finance.
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