Market Forecasts Polymarket’s recent fee escalate has started to impact its numbers, with daily fees and revenues skyrocketing in the days following the March 30 price change.
According to according to DefiLlama data, daily fees rose from about $363,000 on Monday to more than $1 million on Wednesday and Thursday, while revenues (the portion retained after bonuses) reached as much as $995,000 on Wednesday before falling to about $899,000 on Thursday.
Jump follows on Monday rolled out a broader fee model as the platform expanded taker fees beyond cryptocurrencies and sports to categories including finance, politics, economics, culture, weather and technology, while keeping geopolitical and global events fee-free.
The jump shows how aggressively Polymarket is monetizing trading activity to maintain continued investor interest in the face of regulatory scrutiny in the U.S., Europe and other countries around the world. Last week, Intercontinental Exchange, the parent company of the New York Stock Exchange, invested $600 million in Polymarket.
Prediction markets face increasing regulatory scrutiny
The edged escalate in fees and revenues comes as prediction markets, including Polymarket, face increasing regulatory scrutiny in multiple jurisdictions.
In Europe, Polymarket has faced increasing restrictions, with Hungary and Portugal moving to block or restrict access in January amid concerns that the platform was operating in unlicensed gambling. Regulators in both countries cited licensing issues and, in Portugal’s case, concerns about political betting.
Related: Peter Brandt, Polymarket investors do not see novel highs for Bitcoin this year
On March 17, a court in Argentina ordered a nationwide ban on Polymarket, arguing that the platform allows users to place bets without sufficient identity and age verification. The court said this meant that even children and teenagers could access the platform and place bets without any control.
According to to the Polymarket website, the platform is currently blocked in 33 countries. Kalshi’s turn reports that it is banned in 52 jurisdictions.
In the United States, at least 11 states have taken legal action against prediction marketplaces such as Polymarket and Kalshi, and several have issued cease-and-desist orders or are considering novel regulations.
Despite regulatory restrictions, Polymarket and Kalshi are planning to expand, with both platforms reportedly exploring novel rounds of financing that could value each platform at around $20 billion.
On March 24, Polymarket and Kalshi introduced novel trading restrictions to curb insider trading in response to criticism about timely bets and growing concerns about market integrity.
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