Polymarket, a blockchain-based prediction platform, shattered records in September. Trading volume soared to $533.51 million, marking a significant increase from August’s $472 million. This growth was fueled by the anticipation surrounding the 2024 U.S. presidential election and ongoing global events.

• Polymarket's trading volume surged to $533.51 million, with active users reaching 90,037 – a 41% increase from August. The platform also saw its busiest day with 16,702 participants.

• "Presidential Election Winner 2024" emerged as the top market, driving 84% of market share and over $89 million in 30-day volume. Open interest, after a brief dip, rebounded to a peak of $136 million.

• Polymarket is reportedly seeking $50 million in new funding, which may indicate a potential token launch.

Polymarket user growth | Source: Dune Analytics 

The platform saw a surge in active users, reaching a new peak of 90,037, up by 41% from the previous month. With just over a month left until Election Day on November 5, Polymarket’s top market, "Presidential Election Winner 2024," recorded an impressive 30-day volume of $89 million.

As of October 4, predictions were split evenly between Donald Trump and Kamala Harris at 49%. However, Trump took a slight lead later after President Biden discussed potential retaliation against Iran for its missile attacks on Israel.

Read more: What Is Polymarket Decentralized Prediction Market, and How Does It Work?

Polymarket trading volume trend | Source: Dune Analytics 

Polymarket’s September volume outpaced August by $61.51 million. The platform recorded its highest daily volume on September 11, but this was soon eclipsed by new records set on October 2 and 3. September 30 marked the busiest day for Polymarket, with 16,702 participants placing their bets on various events.

Despite an early dip in open interest during September, it rebounded strongly, reaching a peak of $136 million. This indicates robust user engagement and growing confidence in predictive markets.

Read more: Polymarket Surges Past $1 Billion in Trading Volume Amid U.S. 2024 Presidential Election Betting Fever

Polymarket’s most popular poll, the 2024 US election forecast | Source: Polymarket

Election-related betting dominated Polymarket in September, accounting for 84% of the market share and involving 64% of its users. The looming U.S. election has become the platform's focal point, drawing in bettors eager to predict the winner and other related outcomes.

Aside from the U.S. election, other popular bets included predictions on geopolitical tensions and financial events. Questions like "Will Israeli Forces Enter Lebanon in September?" and "Fed Interest Rates: November 2024?" also attracted considerable interest.

US Election Fever Accounts for Almost $1B Trading Volume on Polymarket

Polymarket has been riding the wave of U.S. election fervor, capturing nearly $1 billion in trade volume on who will become the next U.S. president. Its decentralized platform allows users to buy and sell shares in different possible outcomes of real-world events, using Ethereum and Polygon blockchain networks.

The price of a "share" in a prediction market ranges from $0.00 to $1, correlating to its percentage chance of winning, or its “odds.” While the platform has found recent success in political predictions, it also supports betting on pop culture, sports, and other political events.

Will Interest Decline Post-Election?

As the U.S. election nears, analysts are watching closely to see if interest in Polymarket will drop post-election. The platform’s focus on diversifying its markets beyond political events and introducing new features like a potential token launch could play a crucial role in maintaining its growth momentum.

Adding to its momentum, Polymarket is reportedly seeking $50 million in fresh capital amid potential plans to launch a token, as reported by The Information. Investors in this round will receive token warrants, allowing them the right to purchase tokens if Polymarket decides to launch them in the future.

This move follows the platform's $70 million raised over two rounds this year. It secured $25 million in a Series A led by General Catalyst, and an additional $45 million in Series B funding with participation from Ethereum co-founder Vitalik Buterin.

The introduction of a token could provide additional utility within the platform, although specific details remain unclear. The anticipation surrounding a possible token launch has caused a stir among the Polymarket community, with some traders reportedly altering their behavior to artificially boost trading volume. This is in hopes of securing a larger share in a potential airdrop, according to large traders monitoring the activity.

Read more: Top 7 Decentralized Prediction Markets to Watch in 2024

Polymarket's record-breaking month in September underscores the growing fascination with decentralized prediction markets. With user engagement at an all-time high and the potential introduction of a platform token, Polymarket is positioning itself for continued success. The coming months will reveal whether this interest can be sustained or if it will wane once the U.S. election results are in.