Prediction market activity has surged to new highs in 2025, fueled by the intensifying competition between Kalshi and Polymarket. In September, Polymarket reported a trading volume of $1.43 billion, while Kalshi surpassed this with over $3 billion. The sector experienced its highest seven-day volume since the 2024 U.S. presidential election, reaching $1.45 billion in late September. Kalshi also led in weekly transactions, recording 3.4 million. The growth in prediction markets is attributed to increased user activity and significant developments, such as a $2 billion investment in Polymarket by Intercontinental Exchange (ICE). This influx of capital and heightened competition are driving the sector's expansion.