Polymarket and Kalshi Eye Multi-Billion Valuations

Prediction market platforms are entering a new phase of rapid growth. According to recent reports, Polymarket and Kalshi are both considering raising fresh capital at record-breaking valuations of $9 billion and $5 billion, respectively. These numbers highlight how quickly the industry is gaining investor attention and market traction.

Polymarket Aims for $9B Valuation After U.S. Re-entry Approval

Polymarket is one of the fastest-growing prediction platforms in the industry. The blockchain-based platform lets users place bets on many types of events, from political elections to sports games like the NFL. 

In June, the company raised $200 million, which gave it a valuation of $1 billion. Now, the company is focused on pushing its valuation as high as $9 billion. At least one investor has reportedly offered terms valuing the company at $10 billion, according to Business Insider. 

This update came shortly after Polymarket received approval from the U.S. Commodity Futures Trading Commission (CFTC) to relaunch in the United States. CEO Shayne Coplan confirmed the approval earlier this month, calling it an important step toward wider growth in the U.S.

Kalshi Nears $5B Valuation with Traditional Approach

Kalshi is also on a strong trajectory. The report revealed that the platform is close to finalizing a funding round that would value it at $5 billion. This is more than double the $2 billion figure from its last raise just months ago. Kalshi’s approach is more traditional compared to Polymarket. 

The company is fully regulated by the CFTC, requires users to deposit U.S. dollars, and enforces standard identity checks. This setup gives Kalshi strong credibility in the regulated U.S. market.

Onchain shows that 2025 has already become the strongest year on record for prediction market funding. More than $216 million has been raised through 11 deals, a big jump from $80 million in 2024 and $60 million in 2021. Before then, very little funding went into the sector.

Trading Surges as Prediction Market Competition Grows

The main difference between Polymarket and Kalshi is in how they work. Polymarket runs on the Polygon blockchain, uses USDC for payments, and allows anonymous trading worldwide. 

In contrast, Kalshi follows a regulated path in the U.S. market with stricter compliance rules. Despite their differences, both platforms are attracting heavy trading activity. In August, Kalshi recorded $875 million in trading volume, while Polymarket reached $1 billion. 

Similarly, both companies also enjoy backing from top investors. Polymarket is backed by Founders Fund, led by Peter Thiel. Kalshi has support from Paradigm and Sequoia Capital. 

The rise of prediction markets goes beyond just these two platforms. Several other players are entering the field. Crypto.com, in partnership with Underdog, has launched sports prediction markets across 16 U.S. states. At the same time, Coinbase is exploring its own version of a prediction platform.