Polymarket Hits Record 450K Traders Despite Election Cycle Ending

Blockchain-based prediction platform Polymarket reached a new milestone in January 2025, recording 450,000 monthly active traders.

The figure represents a 91% increase from October 2024’s 235,000 traders, indicating strong continued usage even after the U.S. elections.

The platform saw steady growth in the fourth quarter of 2024, with active traders rising to 300,000 in November and 350,000 in December. However, while user participation expanded, trading volume declined from November’s peak of $2.6 billion to $1.23 billion in January 2025.

Despite the slowdown in trading volume, the increase in active traders suggests that Polymarket is attracting interest beyond political events. Open interest, which peaked at $500 million on November 5, 2024, during election-related trading, has now stabilized at $100 million. While political betting markets remain dominant—especially those tied to Donald Trump’s presidency—Polymarket expanded into sports betting, covering events like the Super Bowl, NBA Championship, and Champions League.

The platform’s growth coincides with regulatory scrutiny in the prediction market sector. The Commodity Futures Trading Commission (CFTC) has been investigating Polymarket, with a Coinbase subpoena seeking customer data as part of the probe.

These regulatory concerns could impact Polymarket’s future, especially as speculation builds around the launch of a native token.

The increase in active addresses also fueled speculation that Polymarket may eventually conduct an airdrop or token issuance as the U.S. regulatory landscape under the Trump administration could provide a more favorable environment.

In November 2024, the FBI raided the home of Polymarket CEO Shayne Coplan amid concerns around the platform’s compliance with regulatory standards.

The raid came shortly after Republican Donald Trump’s election victory, which resulted in millions of dollars in winnings for cryptocurrency investors betting on his success through Polymarket. At the time, a Polymarket spokesperson labeled it as “political retribution” by the Biden administration for hosting a platform that allegedly “correctly called” the recent U.S. presidential election in favor of Donald Trump.

International regulators have also taken an interest in Polymarket’s operations. France’s gaming authority launched an investigation to assess the platform’s compliance with gambling laws.