CertiK: Prediction market to reach $63.5 billion in trading volume by 2025, with the industry facing security and regulatory challenges

PANews February 10 News, according to the “2026 Skynet Prediction Market Report” released by CertiK, prediction markets saw trading volume grow to $63.5 billion in 2025, achieving a fourfold increase, with Kalshi, Polymarket, and Opinion becoming dominant platforms. However, this growth also brought new risks, including oracle vulnerabilities, administrator key misuse, and Web2.5 architecture issues.
The report states that prediction markets are considered legal financial products in the United States through CFTC rulings, but are viewed as unlicensed gambling and banned in several EU countries. Additionally, regulatory differences across US states may further complicate compliance. In December 2025, Polymarket’s third-party certification provider experienced a security incident, exposing centralized failure points in the hybrid Web2/Web3 architecture. The study also estimates that during the airdrop peak, manual trading on some platforms accounted for up to 60%, severely distorting liquidity metrics.
CertiK predicts that in 2026, prediction markets will see accelerated technological privacy enhancements and institutional adoption, but platforms will need to address liquidity maintenance, security infrastructure development, and revenue model sustainability to achieve long-term growth.

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