The prediction market is going wild. Looking at last week's data, it seems the weekly trading volume exceeded 38 million transactions, setting a new record. On-chain analysis from Dune Analytics shows that the growth of this sector is nothing short of extraordinary.

Compared to the beginning of last year, trading volume has increased by over 130 times. What does this mean? It’s not just about numbers; it indicates that cryptocurrency users are seriously starting to participate in event predictions. Activity is expanding across all categories, including politics, sports, economic indicators, and tech milestones.

Polymarket is leading with 22.58 million transactions, followed by Kalshi with 14.86 million. As competition intensifies, liquidity has improved, and spreads have narrowed. For users, this means lower barriers to entry.

Why is it growing so rapidly? In the past, using prediction markets required advanced technical knowledge. Managing wallets was cumbersome, and gas fees were significant. But now, thanks to layer 2 scaling, costs have been reduced to a fraction. Platforms like Kalshi partnering with major fintech apps allow ordinary investors holding millions of dollars in assets to participate with just one click.

By 2026, there will be major geopolitical shifts, updates to economic policies, and ongoing AI technological innovations. These high levels of uncertainty are fueling prediction markets. It’s not just about trading; it’s about trying to discover truth through collective wisdom. Market prices are more accurate than traditional polls or expert forecasts.

The partnership with X (formerly Twitter) is also significant. A flow has been created where discussions on social media directly translate into on-chain trades. The shift from “discussing events” to “trading events” is becoming natural.

Interestingly, in the future, AI agents will manage prediction portfolios. They will process news data in real-time, automatically execute trades, and aim for alpha. Even during quiet news weeks, trading volume will likely stay at high levels.

Regulatory evolution is also noteworthy. Some platforms in the U.S. are choosing full regulation, while others remain offshore. As legal frameworks become clearer, large institutional capital could start flowing in.

A weekly 38 million transactions is not just a milestone; it’s proof that prediction markets have evolved from a niche hobby into a practical financial function. Thousands of active addresses participate every week. As a transparent and incentivized way of processing information, it will undoubtedly become a staple in the digital economy.