Cboe Joins Prediction Market Boom After $23.7B March Volume Surge
Notional trading volume on prediction platforms reached $23.7 billion in March, up more than tenfold year-on-year. Traditional finance venues, including Cboe and Nasdaq, are expanding into prediction markets to offset double-digit declines in crypto trading revenues.
1. Surge in Prediction Market Trading
Notional trading volume on prediction platforms skyrocketed to $23.7 billion in March, more than ten times the level from March 2025, driven by contracts tied to politics, sports and other real-world events as crypto trading revenues decline.
2. CBOE Expands into Prediction Markets
Cboe has joined other major exchanges in rolling out prediction market offerings, aiming to capture trading activity when crypto price movements stall and investors seek alternative derivatives. The exchange plans to leverage its regulatory standing and existing infrastructure to integrate event-based contracts into its platform.
3. Market Outlook and Implications
Analysts view prediction markets as a growth avenue for Cboe to diversify revenue streams, especially with Bitcoin down roughly 50% from 2025 highs and altcoins underperforming. Success in this space could help stabilize trading volumes during prolonged crypto downturns.