📊 Prediction Markets Hit ~$64 B in 2025, But Critical Security Flaw Emerges
Crypto prediction markets surged to roughly $63.5 billion in total trading volume in 2025, marking rapid mainstream growth. However, this boom has exposed a serious security vulnerability tied to centralized login systems and structural weaknesses in platform design.
Key Facts:
• Massive growth: Trading volume jumped ~4× from 2024 to 2025, with activity extending well into early 2026.
• Security risk: A December 2025 incident involving a third‑party login provider exposed user accounts on Polymarket due to reliance on Web2‑style authentication, even though on‑chain settlement was secure.
• Dominance & concentration: Kalshi, Polymarket, and Opinion now control over 95 % of global prediction market volume, raising concerns that failures could have system‑wide effects.
Expert Insight:
Analysts warn that hybrid Web2/Web3 architectures — designed to ease onboarding — create single‑point failures that contradict decentralization principles. The sector now faces a crossroads: sustain growth responsibly or risk integrity and institutional adoption.
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