Kalshi and Polymarket Reach $1.4B in Trading Volume as Institutional Investment Grows

TLDR

• Kalshi and Polymarket set a record $1.44B in trading volume, driven by rising institutional interest.
• Polymarket raised $2B, placing it at a $9B valuation, with ICE as a key investor.
• Kalshi’s partnership with Robinhood boosts its market share to 60% in September.
• Polymarket operates fully onchain, providing transparent market data, unlike Kalshi’s off-chain approach.

Kalshi and Polymarket have both achieved a milestone, combining for a record $1.44 billion in trading volume during September 2025. This surge reflects growing institutional interest in prediction markets, with both platforms raising substantial funding to expand their operations. As the industry gains traction, these platforms are attracting more attention from mainstream investors and traders.

Polymarket’s Record-Breaking Funding Round

Polymarket raised $2 billion from the Intercontinental Exchange (ICE), which placed the platform at a $9 billion valuation. The funding marks a key development for Polymarket as it continues to expand its operations.

The raise also minted Polymarket’s founder, Shayne Coplan, as the youngest self-made billionaire, according to Bloomberg. The funding boost follows Polymarket’s solid performance, with significant growth in market share and trading volume.

The success of Polymarket is partly attributed to its onchain approach. Unlike Kalshi, Polymarket runs its markets and positions on the blockchain, providing users with the ability to view all transactions and market data in a transparent manner. This transparency has made Polymarket a trusted platform in the prediction market space.

Kalshi’s Rise with Institutional Partnerships

Kalshi has seen a surge in trading volume, partly due to a new partnership with Robinhood. This partnership enables Robinhood users to place sports bets through Kalshi’s platform. As a result, Kalshi gained access to Robinhood’s large retail user base, driving a rise in market share.

In September, Kalshi captured 60% of the prediction market share, marking a turnaround from earlier in the year when Polymarket had a larger share of the market.

Kalshi operates off-chain, and its market data is available through traditional APIs. This method has raised questions about how to verify the accuracy of its data independently. However, Kalshi’s partnership with Robinhood is seen as a sign that prediction markets are gaining wider acceptance, moving beyond the crypto-native audience.

The Growth of Prediction Markets

Both platforms have set a new standard for prediction markets, drawing increased institutional backing. The $1.44 billion in combined volume last month signals the growing appeal of these platforms as speculative trading venues. The institutional interest has led to new financial and technological partnerships, which may further accelerate the growth of Kalshi and Polymarket.

The rise of prediction markets also represents a shift in how financial products are being integrated with blockchain technology. As more traditional financial players show interest in these markets, they are expected to play an increasingly important role in the broader investment ecosystem. The future of prediction markets may be shaped by both off-chain and onchain platforms, offering diverse trading options for different types of investors.

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