Analysis: The market size is projected to reach $95.5 billion by 2035, with a compound annual growth rate of nearly 47%.

[Analysis: Prediction Market Size May Reach $95.5 Billion by 2035, with a CAGR of Nearly 47%] Mars Finance reported on December 29th that 2025 marks a crucial turning point for the prediction market. Major platforms such as Polymarket, Kalshi, Limitless, and Myriad have already surpassed $2 billion in weekly trading volume. This sector has rapidly grown from a state of regulatory uncertainty into a vital new infrastructure in the crypto and financial markets. Looking back to the end of 2024, the US presidential election became a turning point for the prediction market. Polymarket accurately predicted Trump's victory, achieving record highs in trading volume and influence, but also faced regulatory pressure such as a ban in France and an FBI investigation. Subsequently, the US CFTC changed its stance, publicly reflecting on its previous regulatory methods that created a "legal uncertainty trap," and clearing obstacles for platforms like Kalshi. Entering 2025, prediction markets rapidly became mainstream: Robinhood partnered with Kalshi to launch the NCAA's "March Madness" prediction market; Polymarket acquired the CFTC-licensed exchange QCX for $112 million, paving the way for its return to the US market; ICE (the parent company of the NYSE) invested $2 billion, pushing Polymarket's valuation to $9 billion; Trump Media Group launched Truth Predict with Crypto.com; and CNN, CNBC, Google, NHL, and others partnered with Kalshi. Industry reports predict that the prediction market size may reach $95.5 billion by 2035, with a compound annual growth rate of nearly 47%. Meanwhile, emerging platforms such as Limitless and Myriad saw their trading volume increase several times over within months. Although regulatory frictions persist in states like Texas and New York, they have not hindered the industry's expansion. Industry insiders point out that prediction markets are similar to the early stages of DeFi, with an ecosystem built around them, including trading terminals, data aggregation, and collateral applications, taking shape.