CertiK's "2026 Skynet Prediction Market Report" anticipates a significant increase in prediction market trading volume, projecting it to reach $63.5 billion by 2025, a fourfold rise. Key platforms like Kalshi, Polymarket, and Opinion are expected to dominate this expanding market. However, the report highlights potential risks, including oracle vulnerabilities and Web 2.5 architectural issues, as well as regulatory challenges, with prediction markets being legal in the US but banned in several EU countries. The report also notes a security incident in December 2025 involving Polymarket's third-party authentication provider, revealing vulnerabilities in hybrid Web2/Web3 systems. CertiK suggests that while the market is poised for growth with enhanced privacy and institutional adoption by 2026, platforms must address liquidity, security, and revenue model challenges to sustain long-term development.