Polymarket's open interest soars past $100 million as crypto enthusiasts bet big on presidential election

Polymarket, the crypto-powered prediction market, is continuing to grow its monopoly in the space, with its open interest skyrocketing past the $100 million mark. This meteoric rise signals a growing appetite for cryptocurrency-based political forecasting as the U.S. presidential election looms on the horizon.

Polymarket's open interest has experienced an astounding 1,429% increase since the start of the year, climbing from a modest $7 million to an impressive $107 million. This growth trajectory speaks volumes about the platform's increasing popularity and the public's eagerness to put their money where their predictions are.

The presidential election is the star of the show, commanding 77% of Polymarket's weekly volume . This concentration suggests that crypto enthusiasts and political junkies alike are flocking to the platform to speculate on the outcome of one of the most anticipated political events of the year.

While Polymarket reigns supreme, new contenders are entering the ring.

Solana-based prediction market Drift recently launched its BET  product, making waves with a significant one-day volume spike of $20 million. However, BET's average daily volume has since settled to less than $1 million, suggesting that there's still work to be done if they want to overthrow Polymarket. 

This surge in prediction market activity carries several implications for the crypto ecosystem:

• Mainstream Adoption: The growing interest in crypto-based prediction markets could serve as a gateway for broader crypto adoption, especially among those interested in politics but new to blockchain technology. 
• Market Sentiment Indicator: With such a large portion of volume focused on the presidential election, Polymarket could become a key indicator of market sentiment regarding the potential impact of election outcomes on the crypto industry.
• Regulatory Scrutiny: As these platforms gain popularity and handle larger sums of money, they may attract increased attention from regulators and potentially regulatory scrutiny from U.S. regulators.

This is an excerpt from  The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.