Ethereum prediction markets gained traction over the course of the election, both in awareness and value locked in contracts
One of the biggest stories in DeFi this week pertained to the US presidential election. Prior to this election, those that bet on the election had to use centralized platforms that are geographically restricted and have custodial risks. Centralized betting platforms also don’t allow users to obtain leverage on these markets, or to sell their bets on candidates on the fly.
DeFi prediction markets quickly gained traction over the course of the election due to the decentralized and composable nature of Ethereum applications. Augur, Polymarket, and other Ethereum-based betting applications gained traction, both in terms of the value locked in these contracts and in terms of their presence online. Polymarket’s presidential election market has nearly $10 million worth of trade volume. Augur reported $4.7 million worth of open interest in its market, along with $8.6 million in volume. Trades are still coming in as uncertainty is still abundant.
Many in the cryptocurrency space commented on how fascinating it was to them that there were non-crypto users using Polymarket and other Ethereum applications as a point of reference for betting odds.
Some did note, though, that the use of Ethereum applications for election betting also accentuated how far this space has to go before going mainstream. Namely, it would be almost impossible for someone who knows little about cryptocurrency to begin using these platforms at a moment’s notice.