According to new data, Polymarket generated approximately $7.1 million in fees in the first week of the second quarter, making it one of the most profitable protocols in decentralised finance following a pricing overhaul.
At 96.8% of onchain prediction market fees, that pace suggests an annualised run rate of about $365 million if sustained, ranking the onchain prediction platform among the top fee generators in the industry and providing it with almost all of the sector’s revenue.
In terms of costs, Polymarket is currently the eighth-largest DeFi protocol, behind decentralised derivatives exchange Hyperliquid and stablecoin issuers Circle and Tether.
According to data from DeFiLlama, the gains follow a pricing adjustment on March 30 that increased daily costs to almost $1 million, a figure that has mostly held while trading volume continues high.
Polymarket’s impact goes beyond fees, according to onchain measures. As its share of on-chain revenue from prediction markets increases, the total value locked on the platform was above $432 million on Tuesday, according to DeFiLlama data, nearing its November 2024 US election high of over $510 million.
More mainstream partners are beginning to be drawn to Polymarket’s fee engine. The New York Stock Exchange’s parent company, Intercontinental Exchange, increased its stake in Polymarket on March 27 by completing a $600 million cash investment as part of a larger $2 billion commitment that will see ICE provide institutional clients with the platform’s event-driven data.
As part of the platform’s April exchange upgrade, Polymarket announced on Monday that it is replacing its bridged USDC.e collateral on Polygon with a new 1:1 USDC-backed token called Polymarket USD, which will take over as trading collateral as it continues to spin up highly traded markets on the US-Iran conflict, oil, inflation, and equities indices.
Regulation is still a worry despite its increasing revenue. Some US states and other gambling authorities continue to oppose prediction markets. For example, Hungary and Portugal recently ordered local blockage, and Argentina blocked Polymarket nationwide on the grounds that it functions as an unlawful gambling site.
Source: X.com
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