The rapid expansion of on-chain prediction markets is intensifying demands on oracle services, with UMA currently dominating 80% of the market, primarily in subjective markets on Polymarket. Chainlink supports the remaining 20% in price-based markets, while Pyth is utilized by Kalshi for on-chain data resolution. Despite UMA's strong market position, it faces challenges such as long settlement times and manipulation risks, which hinder the development of new market types. The prediction market sector, with a trading volume of $15.7 billion, is emerging as a significant growth engine in the crypto space. Notably, Polymarket's volume surged 48 times during the 2024 U.S. election, and Kalshi's volume increased tenfold. Investment and regulatory developments, such as ICE's $2 billion investment in Polymarket and CFTC's approval of Kalshi's election contracts, highlight the sector's potential. The need for innovative oracle solutions, including AI integration and anti-manipulation mechanisms, is critical to support this growth and address existing challenges.