Why Polymarket Stays Relevant After US Elections According Animoca Brands

The VC’s argument is based on user activity on the platform.

Young woman jumping happily surrounded by Polymarket coins.
Created by Gabor Kovacs from DailyCoin
  • Animoca Brands has contended that Polymarket will remain relevant beyond the US election.
  • The VC’s argument is based on user activity on the platform.
  • Polymarket is taking steps to shore up its future.

As Election Day kicks into high gear in the US, several things hang in the balance. Among them is the staying power of crypto’s 2024 breakout sensation, Polymarket.

The Polygon-based prediction market shot into mainstream consciousness recently as its election market became a go-to source for insights into shifting sentiments around the presidential polls. But with the election now well underway and set to conclude soon, can the platform maintain its relevance? Gaming-focused VC Animoca Brands believes so.

Diversified Activity 

Animoca Brands has contended in a recent report that Polymarket will remain relevant beyond the US election. The firm makes this argument despite conceding that the platform’s election market has been the key driver of interest and volume on the platform. For context, election speculation on the platform has driven its monthly trading volumes from $40 million to $2.5 billion, while also driving open interest from $20 million to $400 million.

Sponsored

Animoca Brandsโ€™ main argument for Polymarket’s continued relevance after the elections lies in the platform’s users’ activity. According to the firm, out of 327,000 users with active positions, only about 80,000 were exclusively betting on the US election, with the remaining 247,000, or about 75%, having a diversified portfolio.

"This substantial engagement in non-election markets suggests a lasting user interest that may sustain the platform's growth and relevance even after the election cycle ends," Animoca Brands asserted.

More than the election, Animoca Brands has asserted that Polymarket’s long-term trajectory depends on strategic positioning.

"In the long term, Polymarket's growth will depend on deftly navigating its market positioning, content strategy, and regulatory landscape. As the platform's popularity grows, so will public scrutiny and competition from traditional and web3 platforms. To fully leverage its visibility and influence, the Polymarket team must make strategic choices to strengthen its position without losing the public interest it has cultivated," the report submitted.

Interestingly, Polymarket already seems to be taking steps to shore up its future.

Polymarket Seeks Fresh Funding, Mulls Token

In September 2024, it was reported that Polymarket was seeking to raise $50 million in additional funding and also contemplating launching a token to allow โ€œusers to validate the outcome of real-world events.โ€

At the time, Cinneamhain Ventures Partner Adam Cochran tipped the move to help the firm secure its future until the next election cycle.

"While I think Polymarket can find more footing, their big volume driver is the presidential election and nothing else comes close. They want to secure runway during the hype to build and weather 4 years," he wrote.

Read this for more on Polymarket:
Polymarket Bettors Go All In Ahead of Trump-Harris Election

See how analysts believe the crypto markets will be impacted by these results of the ongoing U.S. elections:
2024 US Election Finally Here: Hereโ€™s What to Expect for Crypto

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a journalist at DailyCoin covering DeFi ecosystems and exchanges. David has moderate holdings in Bitcoin, and minor holdings in LINK, DOT, INJ, and memecoins.

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