- Kalshi has launched tokenized versions of its event contracts on Solana, working with decentralized finance protocols like DFlow and Jupiter.
- Prediction market trading volume has reached almost $28 billion in 2024, with strong activity from cryptocurrency traders.
- Competition is increasing as Polymarket re-enters the U.S. market following new federal regulatory approval.
- Both Kalshi and Polymarket are targeting larger capital raises and expanding offerings to capture crypto-native liquidity and developer activity.
Kalshi announced on Monday that users can now buy and sell tokenized event contracts on the Solana Blockchain. This move aims to attract more cryptocurrency traders and increase access to federally regulated prediction markets in the U.S. The launch takes place as competition with Polymarket intensifies and trading volumes in the sector continue to climb.
The tokenized contracts mirror those already available on Kalshi’s core platform but trade as blockchain-based tokens. This approach provides greater anonymity to users, since trading occurs through tokens instead of user accounts. According to a recent report, the new feature is live with support from DFlow and Jupiter. These protocols connect Kalshi’s off-chain orderbook with on-chain liquidity pools.
The head of crypto at Kalshi, John Wang, explained, “This is about tapping into the billions of dollars of liquidity that crypto has, and then also enabling developers to build third-party front ends that utilize Kalshi’s liquidity.” Developers now have more options to engage with Kalshi‘s system across multiple blockchain networks.
Prediction-market volume has reached about $28 billion this year, with a weekly record of $2.3 billion in late October, according to research cited by crypto.com. Digital-asset holders generally trade at higher volumes, and Kalshi aims to benefit from that increased liquidity.
Founded in 2018, Kalshi operates roughly 3,500 markets and closed a fundraising round of over $300 million in 2023, achieving a $5 billion valuation. The company became the first to launch federally regulated event contracts on U.S. congressional races in late 2024 after regulatory approval from the Commodity Futures Trading Commission (CFTC).
The competitive landscape is shifting as Polymarket prepares to relaunch in the U.S. after receiving a new CFTC order that permits it to operate as a regulated, intermediated exchange. Polymarket had previously restricted U.S. users in 2022 following a cease-and-desist order and civil penalty for unregistered swaps activity. Now, Polymarket can collaborate with brokerages, offer futures commission merchant custody, and meet reporting and market supervision requirements.
In recent months, Kalshi introduced an ecosystem hub on both Solana and Base, supporting builders and traders. The platform reported $875 million in trading volume in September and formed a partnership with Robinhood to strengthen its offerings in sports-related prediction markets, including pro and college football.
Polymarket is reportedly considering a new fundraising round that could lift its valuation to between $9 billion and $10 billion. Both companies seek expanded capital and greater liquidity, as they respond to updated digital asset policies and rising demand among U.S. traders. As stated by Wang, “If you have a market with no liquidity, then you don’t really have a market. People can’t really trade size or get the prices that they want.”
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