According to BlockTempo, prediction markets have emerged as one of the few 'bull market' sectors in 2025, despite the broader crypto market's downturn. The article outlines 11 popular arbitrage strategies used by 'smart money' participants, including mathematical arbitrage, cross-platform hedging, AI-based probability modeling, and liquidity sniping. It also highlights the growing transaction volumes on platforms like Polymarket and Kalshi, which saw daily trading volumes surge to over $200 million in late 2025. The report notes that prediction markets are still in early stages but are expected to grow significantly, with some forecasts predicting a $1 trillion annual trading volume by 2030. Risks such as oracle manipulation and market volatility are also discussed.
Prediction Markets Surge in 2025 Amid 11 Key Arbitrage Strategies
BlockTempoShare
Summary
Arbitrage trading in prediction markets spiked in 2025, with platforms like Polymarket and Kalshi hitting daily volumes over $200 million. Advanced trading strategies such as mathematical arbitrage, cross-platform hedging, and AI-based probability modeling are now widely used. Liquidity sniping and oracle manipulation remain key risks. The sector is still early but could hit $1 trillion in annual volume by 2030.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.