Prediction markets boom as crypto pulls back

The recent market rally faced its first resistance, with BTC dropping 2.6% and traditional markets also declining. This pullback coincided with negative sentiment reported by the New York Fed. Despite the selloff in most sectors, the AI sector held up relatively well. Meanwhile, memecoins experienced significant losses, sliding 7.7%, as liquidity shifted to new meme launches within the BNB ecosystem. BNB notably surged 27.5% in the past week, bolstered by strong fundamentals and a wave of new memecoins. In terms of prediction markets, Kalshi and Polymarket are competing strongly, with Kalshi seeing a staggering $956 million in weekly volume primarily from sports betting, in contrast to Polymarket's $464 million. The influx of investment into Polymarket from ICE and others signals strong institutional interest, but Kalshi's partnerships appear to be enhancing its reach and volume significantly, particularly in sports. Ultimately, while both platforms vie for dominance, the performance metrics suggest a substantial opportunity ahead for prediction markets as both platforms evolve.

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