- Only 12.7% of Polymarket users have achieved profits
- The platform uses smart contracts to ensure transparency and security
- Most users earn less than $100 on Polymarket
Polymarket is a blockchain-based, decentralized prediction market that applies the betting mechanism to various real-world events, such as political elections, sports, or news.
Operating on the Polygon network, it uses this technology to ensure that bets operate transparently and securely through smart contracts, executing transactions and paying out dividends without intermediaries.
Betting on Polymarket
Users can place bets on various events with live-updated odds. It is powered by on-chain data; therefore, all information and operations are transparent and verifiable.
In contrast with traditional betting markets, Polymarket doesn’t centralize bets. Gains and losses in this market depend on continuously fluctuating odds until the event is actually over.
Polymarket is an example of how prediction markets can provide insight into how people perceive that events will unfold in the future—perhaps better than traditional polls can predict trends or probabilities in those events.
The Challenge of Profiting
According to data from Layerhub, an on-chain analytics platform, the majority of users on Polymarket have not been in the green. Out of a total of 171,113 active crypto wallets on the site, 149,383, or 87.3%, have failed to record any gains, leaving the remaining 12.7%, or 21,730 wallets, in profit.
Among the profitable wallets, most gains remain modest. About 2,138 have made more than $1,000, while most have earned less than $100. Another 7,400 have seen profits between $100 and $1,000, meaning significant returns are quite rare.
Conclusion
What this means is that, even though Polymarket offers a modern and transparent platform to bet on real-world events, most of its users struggle to make substantial profits.
Only a small fraction of the wallets register gains, and meaningful returns are so few and far between that it highlights challenges in deriving benefits from such predictive markets.
