Blockchain intelligence firm TRM Labs projects that the on-chain prediction market's transaction volume will reach $3.66 billion in Q1 2026, surpassing on-chain gambling's $1.4 billion for the first time. This marks a significant shift as on-chain gambling recorded a total annual transaction volume of $5.1 billion in 2025, with a quarterly record of $1.5 billion in Q4 2025. Despite a broader crypto market correction, both sectors maintained robust transaction volumes, driven by loyal user bases. Notably, "high rollers" comprised only 6.3% of wallets but generated 91.8% of the total transaction volume. TRM Labs also highlighted differing financial crime risks, with gambling platforms facing higher money laundering risks and prediction markets more susceptible to insider trading scrutiny.