Polymarket generated $7.1 million in on-chain prediction market fees during the first week of Q2, with daily trading fees averaging $1 million. If sustained, this could result in $365 million in annualized revenue, capturing 96.8% of the market’s prediction fee share. TVL is now $432 million, approaching its 2024 U.S. election peak. ICE’s $600 million investment in March supports institutional data distribution. Polymarket also launched its USD-backed collateral token. Regulatory risks remain in several regions.

Huo Xing Cai Jing reports that the prediction market Polymarket collected approximately $7.1 million in trading fees during the first week of Q2, becoming one of the most profitable protocols in DeFi. If this pace is maintained, its annualized trading fee revenue could reach around $365 million, potentially accounting for 96.8% of all on-chain prediction market fees. Analysis attributes this growth to a pricing reform implemented on March 30, which has stabilized daily trading fees at approximately $1 million and sustained high trading activity. According to DeFiLlama data, Polymarket’s total value locked (TVL) has reached $432 million, nearing its peak during the 2024 U.S. presidential election period. On the institutional front, Intercontinental Exchange (ICE) completed a $600 million cash investment on March 27 as part of a larger $2 billion commitment, enabling Polymarket to distribute its event-driven data to institutional clients. The platform has also replaced USDC.e collateral on Polygon with a new 1:1 USDC-backed token, Polymarket USD, as its trading collateral. Despite rapid revenue growth, regulatory risks persist: certain U.S. states, Hungary, Portugal, and Argentina have imposed restrictions or blocks on prediction markets, citing concerns that Polymarket operates as an unlicensed gambling platform.