"The scenario above describes the race between Kalshi and Polymarket to dominate prediction markets, a field that has been around for years but only took off in 2024 thanks to a more permissive regulatory environment. Right now, Kalshi is racking up new U.S. users, who are betting on everything from sports to political events, while Polymarket is still getting its paperwork in order to operate legally in this country."
"The offerings from the two startups are as similar as those from Uber and Lyft. The only significant difference, aside from Kalshi's head start in the regulatory process, is that Polymarket is built on blockchain rails. Kalshi is scrambling to add crypto capacity, but it will be hard-pressed to catch its rival, which has been clearing transactions on the Polygon layer 2 network since it began, and has a founder who participated in the Ethereum crowdsale while still in high school."
Two startups, Kalshi and Polymarket, are competing to dominate prediction markets, which surged in 2024 after regulatory changes. Kalshi is gaining U.S. users betting on sports and political events and has progressed further in the U.S. regulatory process. Polymarket, not yet available in the U.S., cleared transactions on Polygon layer 2 from inception and emphasizes crypto integration. Both announced funding rounds, with Polymarket reaching a $9 billion valuation versus Kalshi's $5 billion. Speculation about an eventual POLY token and Polymarket's crypto pedigree appear to explain its higher valuation despite weaker app downloads and active users.
Read at Fortune Crypto
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