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Latest data shows that the decentralized prediction market Polymarket experienced a wave of user growth in July. The number of active traders on the platform reached 286,000, an increase of over 18% compared to the previous month, marking the first reversal of a continuous decline that lasted for six months since January of this year.
At the same time, Polymarket's market expansion is also accelerating. In July, the platform added more than 11,500 prediction markets, a 44% increase from the previous month, continuing the steady rise since its establishment.
However, despite the rise in both the number of users and the number of markets, the overall trading volume of Polymarket has declined. The total trading volume in July was approximately $1.06 billion, a decrease of 8.6% compared to June. More notably, the average trading amount per user dropped from $4,800 in June to $3,700 in July, showing a significant decline.
This phenomenon reflects that, although Polymarket has attracted more participants, these new users may tend to engage in smaller-scale transactions. This trend may suggest a change in the composition of users or reflect the cautious attitude of investors in the current market environment.
As Polymarket continues to expand its influence, finding a balance between user growth and trading volume will become a new challenge for the platform. In the future, whether Polymarket can enhance overall trading activity by optimizing user experience and market design will be the focus of industry attention.