Prediction markets face significant challenges in liquidity creation, which may lead to the failure of 90% of these products by the end of 2026. Despite the innovative formula "Yes + No = 1," which simplifies market participation, the inherent difficulty of market making in prediction markets remains high. Unlike AMMs, prediction markets require active order management and face greater inventory risks, making them less accessible to average users. Leading platforms like Polymarket and Kalshi have attempted to address liquidity issues by offering substantial financial incentives. Polymarket, for instance, has invested approximately $10 million in liquidity subsidies, while Kalshi has partnered with Susquehanna International Group to enhance liquidity. However, the dominance of these platforms, supported by significant financial and compliance advantages, poses a formidable barrier for new entrants. As a result, many new prediction market projects may struggle to compete and sustain operations, leading to their potential disappearance by 2026.