Election Bets Drive Fee Spike at Predictions Platform Polymarket

Amid the election excitement, decentralized predictions site Polymarket has become the fourth-highest blockchain project by fees generated.

AccessTimeIconNov 5, 2020 at 12:49 p.m. UTC
Updated May 9, 2023 at 3:13 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Decentralized predictions platform Polymarket has passed DeFi protocol SushiSwap to become the fourth-highest blockchain project in terms of fees generated.

According to Cryptofees, the platform is averaging over $100,000 in daily takings and currently trails behind first-place Bitcoin, Ethereum (second) and DeFi protocol Uniswap (third).

  • Key Events You Shouldn't Miss at Consensus 2024
    Key Events You Shouldn't Miss at Consensus 2024
  • What to Expect From Consensus 2024
    What to Expect From Consensus 2024
  • Will Solana and Altcoins Dominate the Market Next?
    Will Solana and Altcoins Dominate the Market Next?
  • What's Next for FIT21?
    What's Next for FIT21?
  • The rise is partly due to excitement around the U.S. election, which has seen Polymarket users taking punts on bets ranging from "Will Trump win the 2020 U.S. presidential election" through to "Which party will win the state of Georgia."

    "I think us being top 4 of fee-generating blockchain apps, literally anything blockchain-related, is insanity," said Shayne Coplan, Polymarket founder and CEO. "Just in this election cycle alone we have seen our volume surpass $10 million, which is a lot higher than we expected in such a short time frame."

    Since going live on Ethereum's Layer 2 transaction scaling sidechain Matic and a product launch 4.5 months ago, Polymarket's liquidity providers have done "extremely well" in terms of fees generated, according to Coplan.

    While competitors such as PredictIt and Electionbettingodds went offline during the vote count on Wednesday Polymarket remained live throughout the entire election process.

    "There's a lot of services out there, there's a lot of volume but what are people really paying for?" he said. "What are people really getting the most value out of where they are willing to pay fees to some market operator?"

    "Polymarket had live markets for a handful of swing states and had accurately forecasted and priced the outcome of a lot of these," Coplan noted. "It stands to show the significance in the social news cycle in market-based data and market-based journalism."


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.