Prediction markets have reached a record $2 billion in trading volume, fueled by intense betting on the New York City mayoral election and the upcoming 2026 Super Bowl. This surge is attributed to a more favorable regulatory environment in the U.S. and increased competition among platforms such as Kalshi and Polymarket. Kalshi and Polymarket are each handling nearly $1 billion in weekly volume. Polymarket has focused on fewer, larger markets, leveraging blockchain transparency to build credibility. Meanwhile, Kalshi is distributing its volume more broadly and is considering the integration of crypto-based financial tools in the future.