Kalshi and Polymarket have reported a combined notional volume exceeding $3 billion in the third quarter of 2025, marking a significant milestone in the prediction markets sector. This surge is attributed to heightened participation from both retail and institutional traders, reflecting a growing interest in these platforms. The increase in trading volume is supported by regulatory advancements and broader market integration. Kalshi operates under a U.S. federal license, ensuring compliance with domestic regulations, while Polymarket has expanded its access in the U.S. despite being an offshore entity. These developments highlight the evolving landscape of prediction markets and their increasing acceptance among diverse trader demographics.