Ethereum co-founder Vitalik Buterin has highlighted a key barrier hindering prediction markets: the lack of interest payments. In his recent Farcaster post, Buterin emphasized that these markets miss out on substantial annual yield, roughly 4%, provided by dollar-based assets. This absence of interest payments has contributed to reduced trading enthusiasm and limited hedging options, leading to a decrease in overall trading volumes. The monthly trading volume for Polymarket, a prominent prediction market platform, fell from $1.16 billion in July to $1.06 billion in July, according to data. Buterin suggests that introducing interest mechanisms akin to those found in traditional assets could revolutionize hedging strategies and boost market activity.