- Polymarket aims to raise $200 million, which may push its valuation over the $1B mark.
- Website traffic reached 15.9 million visits in May as more users explore crypto betting.
- Despite growing traction, it saw declining trader activity and faced bans in certain countries.
Polymarket, a blockchain-based prediction platform, is in talks to secure $200 million in new funding. If the deal closes, it would raise the firm’s valuation to over $1 billion. Peter Thiel’s Founders Fund is said to be leading the investment, which includes $50 million in previously undisclosed funding. This development follows a spike in platform usage during the 2024 U.S. presidential election season.
The potential funding would build on Polymarket’s Series B round of $45 million in May 2024. It also adds to the $25 million Series A round led by General Catalyst and other investors, including Polychain, at the same time. The Block reported that Polymarket also considered a $50 million raise in September 2024, alongside discussions to introduce its native token for wager settlements. If the initiative proves successful, this raise would put Polymarket ahead of its key rival, Kalshi, which previously raised $30 million in 2021 and secured additional short-term loans in 2024.
Polymarket Sees Drop in Traders
Although the platform hit 15.9 million web visits in May, surpassing betting giants FanDuel and DraftKings, active user engagement has declined. According to on-chain data from Dune Analytics, daily traders peaked above 40,000 in late March but dropped below 25,000 by June.
Dune data scientists estimate that Polymarket’s market predictions achieved up to 94% accuracy. This statistical edge made the platform a widely cited source during the 2024 elections, cementing its status as a reliable prediction venue. The firm’s trading dip since March may reflect cooling interest post-election or shifting focus to worldwide economic events. While short-term activity wanes, interest from Big institutions appears to be growing.
Related: Musk’s X Partners with Polymarket For Real-Time Insights
Regulation, Competition, and Institutional Momentum
Founded in 2020 by Shayne Coplan, Polymarket now faces mounting challenges outside the U.S. Besides being restricted domestically, it has also been banned in countries including France, Singapore, Taiwan, and Belgium. Global regulators have cited issues tied to prediction market manipulation and compliance risks.
Despite regulatory challenges, Polymarket continues to grow strategically. Its recent partnership with Elon Musk’s X platform showcases its ability to scale without launching a native token, setting it apart from competitors in the prediction market space.
On the other hand, Kalshi, a regulated U.S. competitor to Polymarket, has continued to operate under the framework of the CFTC. Backed by Y Combinator and Sequoia Capital, Kalshi stands at the cusp of adoption and scale, yet Polymarket’s meteoric rise with an incoming funding round indicates otherwise.
With a $200 million investment, institutional players are demonstrating their confidence in decentralized platforms that integrate real-world information with blockchain-based financial infrastructure. This move may alter the entire outlook for Web3 applications centered on predictive analytics and event prediction.
