Hey there!

Welcome to the 12th edition of Onchain Lense, a newsletter that provides crypto market insights by analysing onchain activities of different protocols and sectors within the ecosystem.

Today, we are looking at a prediction market protocol called Polymarket. It is built on Polygon and has recently recorded all-time high network activity.

Polymarket, a one-of-a-kind prediction market platform, is causing a stir in the crypto sphere. Leveraging the Ethereum sidechain Polygon, Polymarket provides a platform to speculate on a wide range of events. Its recent surge in activity, fuelled by the intense US election campaign and a significant funding round, is a testament to its unique appeal.

The platform's monthly volume has soared past $100 million for the first time, marking a staggering growth of 76% over the previous month. Similarly, the daily volume reached an all-time high of $10 million on June 28th. This surge is also evident in the monthly active trader numbers; they hit an all-time high of 29,432 in June, from 13,579 in May, an increase of more than 100%.

According to DeFiLlama data, Polymarket's total value locked (TVL) is now $42 million. The total prediction market TVL is $74.64 million, so Polymarket has captured 57% of the market. The second-best protocol, Azuro, only has a TVL of $7.4 million.

This exponential growth in Polymarket’s activity can be attributed to the US election, which attracted significant wagers on the outcomes of key election-related events. The biggest bet on the platform is for the Presidential Election Winner 2024, attracting $208 million. In addition to politics, the platform allows betting on sports, crypto, pop culture, business, and science.

What's particularly interesting is that the platform's most active users are first-timers, as monthly new accounts have seen the most significant increase in the last two months. The user-friendly approach has led to the onboarding of 19,553 and 35,785 new users in May and June 2024, respectively.

In May 2024, Polymarket announced that it had raised $45 million from investors like Peter Thiel (Founders Fund), Vitalik Buterin, and Polychain Capital, contributing to the platform's growth.

Finally, another important metric to consider is the open interest on the platform, which has skyrocketed to $42 million as of July 1st. This helps gauge the popularity and activity of the prediction market, enabling users to understand the level of participation and make informed decisions.

It's exciting to contemplate the future of this sector as the onchain prediction market gains momentum and public interest grows. It's not just a tool for discovering the truth but also a catalyst for fostering open discussions and encouraging growth.

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