Key Points
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Many people are trading prediction market contracts right now.
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That means those same people are probably not taking on as many speculative bets in crypto.
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The crypto market’s cyclical bear market is at least partially to blame here.
Per CoinGecko’s 2026 Q2 Crypto Industry Report, prediction markets, where people trade contracts based on real-world outcomes like elections and sports, saw $113.8 billion in volume in the second quarter of this year, up by a whopping 48.7% from Q1. During the same three months, spot trading volume on the top 10 centralized crypto exchanges fell by 27.9%, and prices of leading assets like Ethereum(CRYPTO: ETH) shed 25.4%, with Bitcoin(CRYPTO: BTC) faling 14.2%.
Is this a case of unlucky timing for…
