Polymarket Takes: 97% On-chain Predictions Costs

Polymarket Captures 97% of On-Chain Forecast Market Costs After Renewal

8 April 2026 at 12: 02

Reading time: 2 minutes

Polymarket has developed into one of the most profitable protocols within decentralized finance, particularly following a recent price revision. In the first week of the second quarter, the platform generated approximately $7,1 million in fees. If this trend continues, it means annual revenue of around $365 million, placing Polymarket among the top fee generators in the sector. Notably, the platform accounts for no less than 96,8% of the total fees for on-chain prediction markets.

This rise follows a price change on March 30, which pushed daily fees up to approximately $1 million. This level has been largely maintained, while trading activity remains high, positioning Polymarket as the eighth-largest DeFi protocol by fees according to data from DeFiLlama, alongside stablecoin issuers such as Circle (USDC) and Tether (USDT), as well as the decentralized derivatives exchange Hyperliquid.

Moreover, there are other important on-chain metrics that underpin Polymarket's growth. The total value locked on the platform exceeded $432 million last Tuesday, close to the peak level of approximately $510 million during the US elections in November 2024, while Polymarket's share of revenue from on-chain prediction markets continues to increase.

Polymarket's fee engine has attracted an increasing number of mainstream partners. The Intercontinental Exchange (ICE), owner of the New York Stock Exchange, deepened its commitment to Polymarket with a $600 million cash investment on March 27. This is part of a larger $2 billion commitment in which ICE will distribute the platform's event-driven data to institutional clients.

In terms of infrastructure, Polymarket recently announced that it will replace its bridged USDC.e collateral on Polygon with a new token named Polymarket USD, which is backed 1:1 by USDC. This change is part of the platform upgrade in April and will become the trading collateral, while the platform continues to focus on increasingly busy markets related to the US-Iran conflict, oil, inflation, and stock indices.

Despite growing revenue, regulation remains a significant risk. Prediction markets face opposition from various US states and gambling regulators in other countries. Recently, Hungary and Portugal have imposed local blockades, and Argentina has instituted a nationwide ban on Polymarket, on the pretext that the platform operates as an unauthorized gambling site.

Frequently Asked Questions

How does the recent price change affect trading activities on Polymarket?
The price change has led to a significant increase in daily fees, indicating that trading activity remains consistently high. This may encourage investors to participate more actively.

What are the implications of the investment by ICE for Polymarket?
The investment by ICE demonstrates confidence in Polymarket's long-term potential. This could not only increase the visibility of the platform but also foster broader acceptance within institutional circles.

What is the status of regulations for prediction markets in the future?
The future of prediction markets remains uncertain; both legal and regulatory obstacles can hinder their growth. It is crucial for investors to closely monitor regulatory developments, as these can have a direct impact on the operational models of platforms like Polymarket.

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