Link: Data shows open interest on Polymarket fell 64% from $510.95M on November 5 to $184.16M by November 8, highlighting the platform's reliance on political betting (MK Manoylov/The Block)

Polymarket, a decentralized prediction market, experienced a significant 64% drop in open interest from $510.95 million to $184.16 million shortly after the U.S. presidential election.

This decrease occurred as users likely cashed out their winnings following the election, where Donald Trump was declared the victor and became the 47th president.

Steven Zheng from The Block notes the platform's reliance on political betting markets and suggests it must diversify to maintain trader interest.

During the election, Polymarket saw a total betting volume of $3.6 billion on the Trump versus Kamala Harris presidential race, indicating the significant role of major political events in such markets.

Despite controversy over potential market manipulation by a massive $45 million bet placed by a trader named "Theo," Polymarket cleared the incident, describing the betting as personal opinion without market manipulation.

CEO Shayne Coplan defended the platform, emphasizing that prediction markets are peer-to-peer, reflecting real-time market prices rather than the influence of large bets. #

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Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.