Volume on prediction markets has surged in recent months, surpassing both meme coins and Non-Fungible Token.
Meanwhile, major players in the market are competing for a foothold in this rapidly growing sector. This boom raises a big question: Will the prediction market be the next big trend in the crypto world?
Market predictions versus meme coin
In a recent post on X (formerly Twitter), an analyst stated that while Non-Fungible Token and meme coins once dominated trading activity, the market has now undergone a major shift. The post noted that in October, the market projected a total monthly volume of $7.5 billion.
In comparison, meme coins generated only $2.7 billion in volume , and Non-Fungible Token were even lower, reaching approximately $600 million. This disparity became even more pronounced in the following month.
The volume of the cryptocurrency market is projected to have increased to $9.5 billion. Meanwhile, meme coins and Non-Fungible Token have decreased to $2.4 billion and $200 million respectively.
Another analyst added that on Solana, Polymarket's volume is approaching that of Pump.fun, indicating that the sector is attracting significant interest.
"People are gradually realizing that the prediction market is completely outperforming meme coins," the post stated.
This performance reflects a growing divergence in trader behavior. Meme coins, once thriving thanks to strong communities and intense speculation, are now gradually being forgotten by investors. Traders' priorities seem to be shifting towards platforms that offer clear, tangible value and the ability to participate based on real results.
Market commentator Mario Nawfal also agrees with this view, stating that Capital is "flowing toward real results, not jokes anymore."
“Focusing on the prediction market could be the next step. Polymarket alone has already achieved over $2 billion in volume per month, projected to reach tens of billions of dollars annually, while meme platforms are primarily focused on launching new products rather than maintaining liquidation,” Nafwal Chia .
Previously, John Wang, Director of Crypto at Kalshi, explained that meme coins are gradually weakening due to unfair benefit structures, insider advantages, and concerns about transparency.
Although meme coins remain a groundbreaking tool for free wealth creation and are spreading rapidly, Wang argues that the prediction market is more transparent and fosters better social interaction.
“The prediction market is very simple. You can do your own research and trade based on your own opinion. Meme coin turned out to be a much more complex game than initially imagined. In the prediction market, you don't encounter pump-and- Dump manipulation because the final outcome is based on facts. Moreover, this activity is also more socially oriented,” Wang Chia .
Why is the application of forecasting markets accelerating today?
It's worth noting that the forecasting market has existed for many years. However, thanks to clearer regulations and stronger institutional participation, this field has gained widespread legal recognition, leading to strong growth.
According to data from Dune, there were 278,872 active users in prediction markets last week. Weekly nominal volume reached a record high of $3.82 billion, and the number of transactions per week also reached an unprecedented 12.67 million. These figures demonstrate a very high level of interest.
The weekly nominal volume in the forecast market is expected to reach a record high. Source: DuneNotably, participation is no longer limited to small retail investors. Many large institutions are rapidly entering this field. According to some reports, Coinbase is planning to launch a prediction market.
Gemini Titan, LLC – an affiliate of Gemini – has also received a Designated Contract Market license from the U.S. Commodity Futures Trading Commission . With this approval, Gemini can begin offering a forecasting market to clients in the U.S.Trump Media & Technology Group has also revealed plans to enter this field.
However, significant challenges remain. The prediction market relies on trusted Oracles to confirm results. Disputes over results can impact user confidence. The risk of manipulation remains a major concern, particularly with small or liquidation events. The coming months will be a test of XEM the prediction market can continue its strong growth.
