Polymarket, a leading prediction market platform, is experiencing a surge in trading volume, but concerns are rising over the influence of bots. Research by Hubble reveals that a small group of bot-controlled accounts, representing just 3.7% of all addresses, contribute to 37.44% of the platform's total transaction volume. This suggests that a significant portion of market activity is driven by algorithms rather than human traders.
Hubble's analysis indicates that these bots often participate in over 500 markets, compared to the 289 markets typically engaged by real users. The study highlights that nearly 40% of perceived market sentiment is algorithmically generated, potentially misleading traders who rely on volume-based strategies. To combat this, Hubble has developed techniques to identify bot activity, emphasizing the importance of focusing on traders with longer holding durations as a marker of genuine human insight.
In response to these findings, PolyHub has been introduced as a tool to help traders filter out algorithmic noise and identify true "smart money." By focusing on human-driven signals, PolyHub aims to provide a clearer picture of market trends and assist traders in making informed decisions.
Polymarket Faces Bot Dominance, Traders Urged to Seek Real Experts
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
