Prediction market platform Kalshi launched an ecosystem hub with Solana and Base, accelerating competition with Polymarket as both platforms pursue significant valuations amidst surging trading volumes.

Executive Summary

Kalshi unveiled a new ecosystem hub with Solana and Base, initiating grants and support for builders as it narrows the trading volume gap with rival Polymarket, signaling intensified competition and significant investor interest in prediction markets.

The Event in Detail

Kalshi, a U.S.-regulated prediction market exchange, launched its KalshiEco Hub program in partnership with Solana and Coinbase-backed Base. This initiative is designed to attract builders, traders, and content creators by combining Kalshi's regulatory framework with crypto-native infrastructure, aiming to bridge traditional finance and onchain innovation. The hub provides grants, technical assistance, and marketing support for selected projects. Additionally, Kalshi announced support for native deposits of Solana's SOL token and USDC stablecoin to facilitate crypto user participation. Early collaborators include Kalshinomics, a market analytics dashboard, and Verso, which is developing professional-grade trading tools. Other partners, such as Caddy, are exploring retail-facing trading experiences.

Market Implications

The prediction market landscape is experiencing significant growth and competition. Kalshi reported $875 million in trading volume for August, closing the gap with Polymarket's $1 billion for the same period. This surge follows a $185 million funding round led by Paradigm, contributing to Kalshi's reported target valuation of $5 billion. Polymarket, meanwhile, is in discussions for a new funding round that could push its valuation to between $9 billion and $10 billion, a substantial increase from its previous $1 billion valuation. These valuations reflect strong investor confidence in the sector.

Kalshi operates as a CFTC-regulated platform in the U.S., requiring KYC and dollar deposits, emphasizing regulatory certainty for institutional and U.S. retail adoption. In contrast, Polymarket utilizes Polygon and USDC for pseudonymous trading, offering broader global access. After a settlement with the CFTC in 2021, Polymarket has received regulatory clearance to re-enter the U.S. market, with CEO Shayne Coplan stating that regulators have given the "green light to go live in the USA." This competitive dynamic is expected to drive innovation and enhance user experience. Traditional financial players like Robinhood are also entering the space, with Robinhood Derivatives launching a Prediction Markets Hub in March 2025.

Broader Context

The prediction market sector has seen substantial investment, with over $216 million invested across 11 deals in 2025, tripling the previous year's total. This growth legitimizes prediction markets as a mainstream financial tool, capable of gauging public sentiment on events ranging from elections to economic policies. Polymarket demonstrated its forecasting accuracy during the 2024 U.S. presidential election, processing over $8 billion in bets and accurately predicting the outcome. The sector continues to navigate complex regulatory challenges, particularly regarding whether certain event contracts classify as legitimate derivatives or gambling. Despite these hurdles, the substantial investment and increasing mainstream adoption, including Kalshi's collaboration with Solana and Base, position prediction markets as a significant area of development within the Web3 ecosystem and broader financial markets.