The Rise of Prediction Markets: Why Coinbase’s Move Matters

Every day, millions of people make tiny judgments about what they think will happen next, who will win an election, whether a movie will flop or fly, and even when a new product will actually ship. Most of the time, these predictions stay casual, living in group chats, comment sections, or half-serious debates at dinner. But when we put those guesses together, they form a constant stream of signals about how people really see the future. 

That simple idea is why prediction markets keep popping up. They take those everyday instincts and give them structure. Instead of loud opinions or confident pundits, they rely on people putting real stakes behind their beliefs. 

Prediction markets have long been used to forecast elections, sports results, weather patterns, and pop culture trends. But lately the interest has surged again. What’s driving the renewed interest now is not that people suddenly love guessing, but that these platforms make guesses tradable, measurable, and potentially profitable.

This is where Coinbase’s move matters. When a major crypto platform shows interest, it’s a sign that prediction markets may be moving from a niche idea into something far more mainstream. It suggests that these markets may be heading out of the shadows and into everyday use, becoming a new way people track uncertainty, express belief, and price the future.

You might be wondering: what exactly has Coinbase done to grab headlines, and why should it matter to you? Keep reading to find out.

The Rise of Prediction Markets

Prediction markets aren’t some general idea anymore. Over the past couple of years, they’ve gone from small academic experiments to platforms where people all over the world put real money on the outcome of events, from elections to sports games and economic data.

It helps to look at the numbers to see just how much interest has grown. In early 2024, total monthly bets on major prediction platforms were under $100 million. By late 2025, that figure had shot up to more than $13 billion per month. That’s roughly a 130‑fold increase in betting activity in less than two years. (Financial Times)

Big platforms reflect this boom with their own milestones. Kalshi alone handled $4.39 billion in trading volume in October 2025, with individual months regularly posting multi‑billion dollar figures. (TRUEiGTECH) Polymarket has recorded over $21 billion in cumulative volume since its launch. (Investing.com India)

Investors are paying attention too. Kalshi secured around $1 billion in funding at an $11 billion valuation, while Polymarket attracted roughly $2 billion in backing from major financial firms. (Financial Times) 

Looking ahead, the overall prediction market sector could grow even more. Some industry estimates suggest the market might approach tens of billions of dollars in total value over the next decade, backed by strong annual growth rates. (Encyclopedia Britannica)

With participation surging, trading volumes skyrocketing, and major investors jumping in, prediction markets have moved beyond a niche. They are now part of mainstream finance and growing fast.  

Coinbase’s Entry Into the Prediction Market

Coinbase has been making some interesting moves beyond its usual crypto trading platform, and one area catching attention is prediction markets. These are markets where people can bet on the outcomes of future events, like elections or economic indicators. Coinbase’s approach is straightforward: they want to bring more financial tools to their users, and prediction markets are a natural fit for people interested in new ways to engage with markets.

Partnering With Kalshi

One of their first big steps was partnering with Kalshi, a platform that specializes in event-based trading. Through this partnership, Coinbase users can now access prediction markets directly on the platform, allowing them to make bets on a variety of real-world events. This move is significant because it expands Coinbase’s offerings without having to build everything from scratch, leaning on Kalshi’s existing infrastructure and expertise.

Securing Trust With The Clearing Company

In addition to the partnership, Coinbase has also made a strategic acquisition: The Clearing Company. This company specializes in clearing and settling trades, which is a crucial part of making prediction markets reliable and trustworthy. By bringing The Clearing Company under its wing, Coinbase can ensure that these new markets operate smoothly and efficiently, giving users more confidence to participate.

Together, these moves show that Coinbase is serious about exploring new financial products. They’re building the tools, the infrastructure, and the partnerships needed to support a full-fledged prediction market offering. It’s a clear signal that they see value in giving users more ways to interact with financial markets, beyond just buying and selling crypto.

For users, this could mean a more engaging and dynamic experience on Coinbase. Instead of only trading coins, people can now speculate on real-world events, potentially unlocking a whole new side of the platform. While it’s too early to know exactly how popular this feature will become, Coinbase’s steps show a thoughtful approach to expanding its services.

Why Businesses Want To Build A Prediction Market of Their Own?

Prediction markets are catching the attention of businesses. They are increasingly interested in running their own because they offer a mix of revenue, insights, and engagement that’s hard to match.

Steady Revenue From Every Trade 

First, they can be a steady source of revenue. Every trade on these platforms usually comes with a small fee, and because people can trade on almost any event at any time, those fees add up quickly. Platforms like Polymarket and Kalshi have already shown that this works. Polymarket was seeing about $2 billion in weekly trading volume by late 2025. Even small fees can turn into a significant income when trading is constant.

Access To Valuable, Real-Time Data 

Owning a prediction market gives a business access to valuable data. Every trade reflects how people think events will unfold. This real-time insight can be packaged and sold to investors, insurers, and companies that need to plan for risks. In other words, a business doesn’t just earn from fees. They also get a continuous stream of information that others are willing to pay for.

Get Returning Users Easily 

Prediction markets are great for keeping users engaged. Unlike traditional investments, they’re easy to understand and fun to use. People can check how the odds change throughout the day, make predictions, and share their results. This keeps them coming back repeatedly without the company spending much on advertising. The events themselves drive attention because they’re tied to what’s already happening in the news, so the market naturally attracts users.

So What’s Your Next Step?

By now, it’s clear that prediction markets aren’t just interesting. They’re genuinely useful. They draw people in, keep them coming back, turn real-world events into something interactive, and give businesses a direct view into what their users actually believe.

What makes this even compelling is how quickly everything is lining up. Interest is growing, the concept is becoming more familiar, and big names like Coinbase are entering the space to make prediction markets feel less experimental and more practical. For businesses on the sidelines, this is the window where curiosity can turn into a real opportunity.

If you’ve ever considered entering this space, now is the right time to explore it. Building a prediction market today isn’t about chasing hype. It’s about creating something people want to check, use, and engage with every single day.

And you don’t have to do it alone. Having the right partner like Maticz can make all the difference. Being specialized in building prediction markets like both AI and crypto prediction platforms, we are already helping businesses bring prediction market ideas to life. With the right support, building your own crypto prediction market platform becomes simpler, faster, and far more achievable than it might seem at first glance.