Prediction markets hit $20B monthly as Paradigm builds a pro trading terminal
Prediction markets have exploded in popularity, with monthly trading volumes soaring from under $100 million in early 2024 to over $20 billion by early 2026. Investment firm Paradigm is now building a professional-grade trading terminal to serve this fast-growing sector.
The move follows massive growth in platforms like Polymarket and Kalshi, driven by major events such as the 2024 US elections and expanding into areas like sports, geopolitics, and finance. The surge began in early 2024, as prediction markets gained traction during the US election cycle. Polymarket alone handled over $3 billion in trades during the election period, later hitting a single-day record of $425 million on February 28, 2026. By late 2025, total monthly volumes across platforms exceeded $13 billion, climbing past $20 billion by early 2026.
Kalshi, a regulated prediction venue, became a major player in this expansion. In December 2025, it secured $1 billion in a Series E funding round led by Paradigm, pushing its valuation to $11 billion. Just three months later, in March 2026, another $1 billion raise doubled its valuation to $22 billion. Institutional investors, including ARK Invest, began using Kalshi's data for decision-making as volumes consistently topped $10 billion per month.
Paradigm, a key backer of Kalshi, is now developing a Bloomberg-style terminal for prediction markets. The tool will let professional traders analyse data, route liquidity, and execute trades across platforms. Led by Paradigm partner Arjun Balaji, the project started in late 2025 and includes plans for a 'prediction market index'—a bundled product of multiple event contracts. The firm is also exploring an in-house market-making operation to support liquidity.
User growth has mirrored the trading boom. By early 2026, the number of unique wallets in prediction markets had tripled to 840,000. High-profile events, from NBA playoffs to oil price movements, further fuelled demand, broadening the sector's appeal beyond politics. The prediction market industry has transformed from a niche sector into a multi-billion-dollar trading ecosystem. With institutional players like Paradigm and ARK Invest now involved, the infrastructure for professional trading is rapidly evolving.
The launch of a dedicated terminal and new financial products suggests prediction markets are becoming a permanent fixture in global trading—no longer just a speculative tool but a data-driven asset class.
