Overview

As Polymarket strives for a valuation of $1 billion in a funding round led by Founders Fund, the unsung heroes appear to be the stablecoins that form the backbone of its settlement system, according to a report released by Coinbase analysts.

All transactions on the platform are conducted in Circle’s USDC within the Polygon network, resulting in substantial demand for this dollar-pegged stablecoin. While lending services tie up funds in pools, prediction markets like Polymarket exhibit a rapid turnover of funds, including continuous settling, redeploying, and balance transfers.

Polymarket Settlement

In May alone, Polymarket facilitated over $1 billion in trading volume, averaging between 20,000 to 30,000 daily active users. Notably, following U.S. President Donald Trump’s re-election in November 2024, the platform’s monthly transactions peaked at $2.5 billion, correlating with increased activity in USDC transfers.

This demonstrates that stablecoins are now pivotal to real-time market infrastructures. The report emphasizes that the momentum for these systems is set to grow, especially with a new content partnership aimed at introducing prediction markets as engaging social content rather than just financial tools.