Citizens Bank: Predicts market annual revenue could reach $10 billion by 2030

According to a recent report by Citizens Bank, as reported by Odaily Odaily, prediction markets are growing rapidly, with current annualized revenue exceeding $3 billion and projected to reach $10 billion by 2030, thus becoming a new asset class. The report shows that trading volume in the prediction market continues to rise. January's trading volume increased by over 40% compared to December, and February maintained a similar level, despite the expected decline after the traditional sports season ends. Analysts believe this trend reflects the prediction market's transformation from a niche betting tool to a more mature financial market. Citizens Bank believes that increased trading volume, a more robust market structure, and the initial participation of institutional investors are key factors driving the industry's growth. Currently, some institutions have begun entering the market as data users and liquidity providers, laying the foundation for broader institutional adoption. Prediction markets allow traders to price and hedge risks associated with discrete events such as election results, interest rate decisions, or merger approvals. Compared to proxy instruments such as index futures or options, they can reduce basis risk and provide real-time probability signals. Analysts point out that the development path of prediction markets is similar to that of the early derivatives market and digital asset industry, gradually transitioning from retail investor-dominated liquidity to participation from market makers and institutional funds. Currently, representative platforms include the regulated event contract exchange Kalshi and the decentralized prediction market Polymarket, and the industry as a whole is gradually moving towards the mainstream financial system.