Prediction markets notional volume hit a record $113.8 billion in the second quarter, even as other corners of the crypto economy cooled. The surge came while spot centralized exchange trading, derivatives volume, and stablecoin market cap all declined.
Crypto trading volumes dip
Spot trading on centralized exchanges fell during the quarter, and derivatives volume also dropped. The stablecoin market cap, often used as a proxy for liquidity flowing into crypto, shrank as well. The broad pullback suggests traders pulled back from traditional crypto venues.
Prediction markets surge
Despite the broader slowdown, prediction markets notched their highest quarterly notional volume on record. The $113.8 billion figure marks a new high for the sector, which allows users to bet on the outcomes of events ranging from elections to sports to financial indicators.
The divergence raises questions about where traders are putting their money. While spot and derivatives exchanges saw less activity, prediction markets attracted growing interest. The data covers the three months ending June 30.
Whether the trend continues into the second half of the year will depend on upcoming events and market conditions. The next quarterly data will offer a clearer picture of whether prediction markets can sustain their momentum.
