Prediction markets are seeing a growing divide as informed traders consistently outperform retail participants, according to Cointribune. Research by 10x Research indicates that while most users treat these markets like sports betting, aiming for quick gains, a small group of savvy traders profit by exploiting market inefficiencies. The influx of liquidity and retail interest has attracted professional trading desks, further widening the performance gap. Additionally, a bug in Polymarket's data led to trading volumes being double-counted, as noted by Paradigm researcher Storm Slivkoff. Data from Dune reveals that only 17% of Polymarket wallets are profitable, underscoring the difficulties faced by less-experienced traders in these competitive environments.