Prediction markets are experiencing unprecedented growth in 2025, with Kalshi reaching a valuation of $11 billion and Polymarket at $9 billion. Kalshi secured $1 billion in funding from Sequoia and CapitalG, while ICE invested $2 billion in Polymarket. Both platforms have formed partnerships with major media outlets like CNBC, CNN, and Yahoo Finance. Additionally, Robinhood and Coinbase have entered the prediction market space. As the 2026 U.S. midterm elections approach, these platforms face challenges related to regulatory scrutiny and trading volume, which will test their prediction accuracy and sustainability.