Kalshi, Polymarket Set $2.7 Billion Weekly Crypto-Contract Volume Record

Kalshi and Polymarket recorded a combined $2.7 billion in notional volume for cryptocurrency event contracts last week, a record, as short-term Bitcoin up-or-down contracts were especially active.

A single trade in a 15-minute Bitcoin price contract on Kalshi can exceed $1 million. Some participants use automated trading bots to seek opportunities in the seconds before contracts expire. Crypto is the platforms' second-largest category after sports.

In July, crypto contracts generated about $7.3 billion in volume, the second-largest prediction-market category.

Coinbase, Crypto.com, Gemini and Kraken are pursuing licenses or partnerships to enter prediction markets. Declining spot trading volume at centralized exchanges is also prompting crypto companies to pursue other business lines.

Several U.S. states have challenged sports-related prediction contracts. The regulatory direction may affect how the industry develops.