Kalshi's August volume reached $875 million, with regulatory advantages closing in on Polymarket.

The regulated prediction market platform Kalshi achieved a volume of $875 million in August, gradually approaching the $1 billion performance of its decentralized competitor Polymarket. With $185 million in funding and a valuation of $2 billion obtained in June this year, Kalshi is leveraging its regulatory advantages and capital support to accelerate its challenge against Polymarket's leading position in the crypto-native community.

Volume and financing both increase, Kalshi accelerates expansion

(Source: Kalshi)

Volume: 875 million USD in August

Financing: Led by the crypto venture giant Paradigm, $185 million

Valuation: 2 billion USD

Strategic layout: Hire a full-time cryptocurrency director and prepare to enter the blockchain native functions.

The influx of funds demonstrates strong demand from institutional investors for regulated prediction markets, providing ammunition for Kalshi to expand its products and liquidity.

Kalshi vs Polymarket: The Battle of Regulation and Decentralization

Kalshi

1. Regulated by the Commodity Futures Trading Commission (CFTC) of the United States.

2. Require USD deposits and traditional KYC process.

3. The user base is limited, but it provides regulatory certainty for the US market.

4. More attractive to institutional investors and American retail investors.

Polymarket

1. Operate based on the Polygon blockchain

2. Settle with USDC, providing anonymous transactions.

3. High global accessibility, but limited in the US market.

4. CEO Shayne Coplan announced that after acquiring the derivatives exchange QCEX, it has been approved to launch in the United States.

Competitive Landscape and Future Trends

Currently, Kalshi is penetrating the crypto-native market with regulatory advantages and institutional funds; while Polymarket continues to attract global users relying on decentralization fundamentals and the stickiness of the crypto community.

The future competition focus may be concentrated on:

Functional Innovation: Richer Markets and Trading Tools

Liquidity depth: Attracting more market makers and large funds

Regulatory Framework: Providing users with a clearer path for compliant participation

Conclusion

The competition between Kalshi and Polymarket is reshaping the landscape of the prediction market. As both sides chase each other in regulatory compliance, Decentralization advantages, capital, and technological innovation, the ultimate beneficiaries will be the users — they will gain safer, more liquid, and more diverse options in the prediction market.