Polymarket Analysis Reveals Trends in Market Liquidity and Activity

According to PANews, a recent analysis of 295,000 historical market data points on the Polymarket platform has revealed several key trends. Firstly, over 60% of short-term markets have become inactive, with 63.16% of contracts in markets active for less than one day recording zero trading volume in 24 hours. This indicates a significant lack of liquidity in short-term crypto markets. In comparison, short-term sports markets have an average trading volume of $1.32 million, which is 30 times higher than the $44,000 average for crypto markets, highlighting the disparity in liquidity support. Furthermore, an extreme concentration of trading volume is evident, with only 505 contracts exceeding $10 million in trading volume, yet these account for 47% of the platform's total trading volume. Long-term predictions, defined as those lasting more than 30 days, show an average liquidity 45 times greater than single-day markets. Among these, U.S. political markets lead with an average volume of $28.17 million. Additionally, the geopolitical sector is emerging rapidly, with its active participation rate reaching 29.7%, making it the fastest-growing segment. The data suggests that Polymarket is evolving into a platform characterized by "high-frequency sports betting" and "macro-political hedging," with liquidity heavily concentrated in a few dominant narratives.