TL;DR
- Polymarket is aiming for a $1 billion valuation, with USDC firmly established as the foundation of its settlement system on the Polygon network.
- According to Coinbase Research, the high trading volume on Polymarket drives stablecoin demand, thanks to its constant capital turnover.
- Record activity following Trump’s re-election and the partnership with X highlighted the role of prediction markets as real-time liquidity engines.
Polymarket continues expanding and is seeking a $1 billion valuation in a new funding round led by Founders Fund.
This rapid growth not only positions the prediction platform among the most active projects in the crypto ecosystem but also fuels constant demand for stablecoins, particularly USDC, which has become a core component of its settlement infrastructure.
A Coinbase Research report points out that stablecoins are the main beneficiaries of Polymarket’s rising activity. All transactions on the platform settle in USDC on the Polygon network, ensuring a steady transaction flow and sustained demand for the token.
Unlike lending protocols, where funds often remain locked, prediction markets operate with high capital turnover. Users continuously settle, reinvest, and move their funds, making USDC an ideal vehicle for these fast-moving operations.
Polymarket Proves the Real Capabilities of USDC and Stablecoins
Since its launch, Polymarket has processed over $14 billion in trading volume. In May alone, it surpassed $1 billion in monthly volume, with 20,000 to 30,000 active daily traders. One of its busiest periods came in November 2024, following Donald Trump’s re-election, when the platform moved $2.5 billion in a single month. That surge came with spikes in USDC transfers and increased bridge activity to move liquidity.
For Coinbase, this behavior shows how stablecoins already serve as functional infrastructure for real-time markets. The ability to instantly settle and redistribute funds gives them operational value beyond acting as a store of value. Additionally, Polymarket’s content partnership with X could accelerate this trend by linking prediction markets with viral, socially-driven content.
Polymarket’s growth confirms that demand for agile, stable financial tools within the crypto ecosystem keeps rising. Stablecoins are gaining ground as an efficient solution for platforms that require fast, continuous liquidity.
