Kalshi and Polymarket Experience 14% Volume Drop in August Amid World Cup Aftermath

In August, the combined trading volume across Kalshi and Polymarket declined by 14.5% to $45.33 billion, marking a significant pullback after a period of sustained growth in the prediction markets sector. This decrease follows a record-breaking July, which saw a volume of $50.59 billion, largely fueled by the FIFA World Cup held from June 11 to July 19.

The World Cup had a pronounced impact on sports betting contracts, which accounted for over 88% of recent activity on Kalshi. Despite the overall downturn, Kalshi managed to maintain 85-90% of its weekly volume as August progressed. In July, Kalshi alone contributed $37.7 billion, representing approximately 74.5% of the total volume across both platforms.

While the NFL preseason markets generated $167.8 million in activity across Kalshi and Polymarket during the week ending August 16, Kalshi was responsible for about 79% of that figure. Notably, Kalshi achieved a milestone by surpassing $10 billion in weekly contract volume for the first time, reaching $10.17 billion for the week ending August 30.

Kalshi operates as a CFTC-regulated exchange focusing heavily on sports, while Polymarket has garnered interest in macro and esports markets, appealing to different audiences within the prediction market landscape.