Altcoin Market Cap May Decline Further in October Amid Rising Sell Pressure and Weakening Demand.

BIO Protocol's native token BIO surged 58% after being listed on South Korea's largest crypto exchange, Upbit. The altcoin's trading volume rose over 500% as investors flocked to BIO. The DeSci sector, which includes BIO, also saw a significant uptick, with the market cap climbing 11.5% to $820 million. The listing triggered a strong rebound after BIO cooled off from its record rally in August.

The prediction market industry has experienced a significant surge in trading volume, with weekly volumes reaching a record high above $2 billion. This growth is driven by increased user activity and a relaxed regulatory environment, particularly in the United States. Polymarket has reclaimed its lead over Kalshi, a federally regulated prediction market platform, after trailing in trading volume for the past eight weeks.

Sports betting has been the primary driver of this growth, accounting for $414.7 million in volume last week, outpacing political markets despite growing election-related activity. Major funding rounds have also boosted valuations, with Kalshi raising $300 million at a $5 billion valuation and Polymarket securing $2 billion from ICE for a $9 billion valuation, according to a Decrypt report.

The industry as a whole is close to surpassing $2 billion in weekly volume, with Polymarket leading the way at $1 billion worth of volume, followed by Kalshi at $950 million. Other players like Limitless and Myriad have also seen significant growth, with Limitless quadrupling its footprint to $21.9 million and Myriad growing to $3.8 million worth of weekly volume, the report noted.

The regulatory environment has been a key factor in this growth. Both Polymarket and Kalshi received CFTC no-action letters earlier this year, allowing them to open their platforms to U.S. users without the threat of enforcement action. However, some state regulators have challenged their status as CFTC-regulated entities, the Decrypt piece adds.

This regulatory relaxation, combined with increased user activity and substantial funding rounds, has led to a significant increase in company valuations. Kalshi, for instance, closed a $300 million series D round of funding that valued the company at $5 billion, with notable investors including a16z, Sequoia, and Coinbase. Polymarket, on the other hand, secured a $2 billion investment from New York Stock Exchange parent company Intercontinental Exchange, pushing its valuation to $9 billion, the report also states.

Looking ahead, the prediction market industry is expected to continue its growth trajectory. An often cited Certuity report estimates that prediction markets could reach $95.5 billion by 2035, with a compound annual growth rate of 46.8%, per the Decrypt analysis.