As Polymarket seeks a $1 billion valuation in a Founders Fund-led spherical, the “quiet winners” often is the stablecoins underpinning its settlement infrastructure, Coinbase analysts wrote in a Friday analysis report.
All the platform’s trades settle in Circle’s USDC on Polygon, creating measurable demand for the dollar-pegged token. And whereas lending protocols lock capital in swimming pools, prediction markets like Polymarket cycle funds at a excessive velocity — settling, redeploying and transferring balances repeatedly, the analysts mentioned.
The platform has processed greater than $14 billion in lifetime buying and selling quantity. In Could alone, it cleared $1 billion, with every day lively merchants averaging between 20,000 and 30,000.
In the meantime, within the speedy aftermath of U.S. President Donald Trump’s re-election in November 2024, month-to-month quantity soared to $2.5 billion, sparking corresponding spikes in USDC transfers and bridge exercise.
Such flows display how stablecoins now energy real-time market infrastructure. “Momentum is prone to speed up additional with a brand new content material partnership with X, positioning prediction markets as viral social content material fairly than purely monetary instruments,” the report mentioned.