Polymarket's first-week fees for Q2 reach $7.1M, potentially capturing 96.8% of on-chain prediction market fees.

ChainCatcher report: Predictive 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 maintained at this pace, its annualized trading fee revenue could reach around $365 million, potentially accounting for 96.8% of all on-chain predictive market trading 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 predictive markets, citing Polymarket’s classification as an unlicensed gambling platform.