Prediction markets, where users can bet on the outcome of future events, are a key application of decentralized finance, which allows users to conduct financial transactions on a blockchain without a middleman. Elections and political debates attract high numbers of traders to these platforms and seem to attract new users to crypto betting platforms as well.
YieldWars’ co-founder, who goes by Owl, told CoinDesk via Telegram that the sudden rise in volume is far from shocking given the scale and importance of the election. “Crypto-based prediction markets should be flourishing on blockchain right now but have failed to deliver up to this point. The election has breathed life into prediction markets but what is going to happen when it ends? Are people going to be as enthusiastic about them?” Owl said.