Solana News Today: Kalshi, Polymarket Vie for Prediction Market Supremacy in Crypto Liquidity Race

Kalshi has launched tokenized versions of its event-contract wagers on the Solana blockchain, positioning itself to attract crypto-native traders and deepen liquidity in its prediction markets. The move, which mirrors the on-chain trading model popularized by rival Polymarket, allows users to trade blockchain-based tokens that replicate Kalshi's existing markets, spanning political outcomes and macroeconomic data. By leveraging Solana's infrastructure, the platform aims to tap into the broader crypto liquidity pool, a strategy emphasized by John Wang, who noted the access to "billions of dollars of liquidity" and the potential for third-party developers to build front ends.

The integration of tokenized contracts aligns Kalshi with Polymarket's approach, offering traders anonymity and streamlined on-chain execution. Decentralized finance (DeFi) protocols DFlow and Jupiter are facilitating the connection between Kalshi's off-chain order book and Solana's liquidity, enabling seamless trading. This expansion comes as prediction-market activity surges, with combined trading volume reaching nearly $28 billion through October 2025, including a weekly record of $2.3 billion in early October. The shift reflects growing demand from crypto users, who tend to trade at higher volumes than traditional market participants, according to Crypto.com's research division.

Kalshi's move intensifies competition with Polymarket, which recently secured regulatory approval to reenter the U.S. market after a prior ban. Both platforms are vying for dominance in a rapidly evolving sector, with Kalshi now operating 3,500 markets and having raised $1 billion at a $11 billion valuation in November 2025. Meanwhile, Polymarket is reportedly preparing a fundraising round that could value it at $12–15 billion, buoyed by a $2 billion strategic investment from Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.

The regulatory landscape has also shifted in favor of prediction markets, with the U.S. Commodity Futures Trading Commission (CFTC) easing restrictions. Kalshi, which became the first federally regulated platform for event contracts in U.S. congressional races in late 2024, is now expanding into sports betting through partnerships like its collaboration with Robinhood. Galaxy Digital's exploration of market-making roles for both platforms further signals institutional confidence in the sector's scalability.

As Kalshi and Polymarket vie for market share, liquidity remains a critical differentiator. Wang emphasized that "if you have a market with no liquidity, then you don't really have a market," underscoring the importance of attracting crypto-native traders to sustain growth. With both platforms securing major distribution deals-including partnerships with Google Finance and the National Hockey League-the prediction market ecosystem is poised for broader mainstream adoption.