Prediction Markets Could Be Next Big Crypto Use Case, Says Coinbase
Posted on: September 11, 2025, 10:25h.
Last updated on: September 11, 2025, 10:35h.
- Some prediction markets are already heavily rooted in crypto
- The trend is catching the attention of venture capitalists
- Coinbase says prediction markets are among “the most visible crypto use-cases”
Coinbase Global (NASDAQ: COIN) sees prediction markets such as Kalshi and Polymarket expanding the use case for cryptocurrency.
That thesis is coming to life in real time. Polymarket, the largest event contracts exchange in the world, runs on the Polygon blockchain. Some gaming companies have previously used that blockchain for nonwagering purposes, too. Polymarket allows accounts to be funded in Ethereum, Solana, and POL — the native currency of the Polygon blockchain — and contracts on the platform are purchased with the stablecoin USDC.
Since gaining mainstream attention during last year’s presidential election, prediction markets like Polymarket and Kalshi have grown into one of the most visible crypto use-cases, with traders speculating on the outcomes of everything from sporting events to the weather,” notes Coinbase.
Kalshi allows clients to fund accounts in six digital currencies — Bitcoin, Solana, XRP, Worldcoin (WLD), Ripple USD (RLUSD), and USDC.
Prediction Markets/Crypto Relationship Has Synergies
As an asset class, cryptocurrency is young. Bitcoin, the largest and oldest member of the group, isn’t yet 17 years old. That youth places emphasis on use cases, meaning market observers want to see more traditional financial functions conducted in crypto as a form of validation.
Efficiencies are one reason prediction markets check that box. Kalshi previously pointed out that customers opting for crypto deposits can fund accounts with as much $500K in one transaction, which is a higher limit than what’s available on traditional deposit avenues. Conversely, clients funding accounts with traditional bank transfers may have had to wait a day or two to trade.
Supported by the growth of layer-2 networks and the increased security offered by smart contracts, blockchain technology is rapidly growing, providing another catalyst for prediction markets as drivers of increased use of digital currencies.
“Several major prediction market apps, like Polymarket and Gnosis Protocol, also rely on crypto infrastructure, using smart contracts and stablecoins to offer users a decentralized way to wager on real-world events,” adds Coinbase.
Investors Taking Note
Prediction markets’ increased intersection with cryptocurrency is serving another objective: it’s making the industry attractive to venture investors. Following a $185 million Series C funding round in June, in which several crypto-experienced institutional investors participated, Kalshi was valued at $2 billion. Last month, Clearing Company, a young prediction markets operator, raised $15 million from Coinbase Ventures and Huan Ventures.
Polymarket is said to be close to raising $200 million at a valuation of $1 billion, with that funding round reportedly led by noted crypto investor Peter Thiel. His crypto exchange Bullish (NYSE: BLSH) went public last month.
Blockchain’s growth, smart contract security, and embrace of stablecoins are among the reasons prediction markets have become a “killer onchain use case,” according to Hoolie Tejwani, head of Coinbase Ventures.
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