A new report from KuCoin Ventures highlights the shift in focus within the prediction market landscape, emphasizing the crucial role of infrastructure rather than platforms in its future growth. The sector’s rapid expansion to a weekly trading volume exceeding $2 billion has sparked interest in platforms like Polymarket and Kalshi, but experts believe that true long-term success hinges on robust infrastructure solutions. 2025 has seen Polymarket break new records, hosting over 35,000 new markets, showcasing the sector’s increasing mainstream appeal. However, challenges remain, including fragmented liquidity, governance issues, and regulatory uncertainties. The report reframes prediction markets from speculative entertainment to a foundational component of next-generation financial systems. It identifies key infrastructure opportunities that could redefine the prediction market landscape: decentralized oracle networks for reliable data verification, liquidity aggregation protocols for cross-market participation, and compliance frameworks for navigating regulatory landscapes. These layers will ensure scalability, interoperability, and trust, enabling institutional entry and fostering a vibrant ecosystem beyond retail speculation.