Solana-based decentralized exchange aggregator Jupiter plans to launch its recent native prediction market offering it’s constructing with Kalshi before the top of the 12 months.
Jupiter announced on Wednesday that it has just launched the beta version of its Jupiter Prediction Market. Kalshi will provide liquidity for Jupiter's recent offering, which allows users to bet on the end result of events.
Why Jupiter entered the prediction markets race
Kash Dhanda, chief operating officer at Jupiter Exchange, told Cointelegraph that Jupiter's goal is to supply users a wide range of offerings on a single platform, and that prediction markets would also allow them to draw more users.
“Prediction markets represent a powerful evolution of the varieties of assets available on-chain and we’re excited to work with Kalshi to bring them to Solana,” said Dhanda.
Dhanda said that prediction markets are growing rapidly, which is able to lead to the platform gaining recent users.
According to the Q3 Tokenholder report, Jupiter had 8.4 million energetic users within the third quarter, up 5% from the previous quarter.
“As our prediction markets grow, so do our reach, our cross-product synergies, and our revenue, which advantages JUP token holders in the long run,” Dhanda said when asked how the brand new prediction market will profit token holders.
Dhanada said Jupiter will keep in mind user feedback to enhance the product. Additionally, he said the prediction market can be fully launched sometime within the fourth quarter.
“We will proceed to develop the product and increase the boundaries in keeping with the feedback we receive. More markets can be added and we’re preparing for a full launch within the fourth quarter itself,” Dhanda said.
Prediction market in beta phase
The beta version currently only offers one market based on which Formula 1 driver will win the upcoming Mexican Grand Prix.
The global maximum variety of contracts is about at 100,000; individual positions are limited to 1,000 contracts.
The first market has reached $120,000 in volume since its launch on Wednesday. Source: Jupiter Exchange
Currently, the quantity of the primary test market has exceeded the $100,000 mark, with F1 driver Max Verstappen leading the way in which. Almost 46% of users predicted that the Dutch-Belgian racer will win the event, while British racer Lando Norris got here second and the percentages of winning the event are 27%.
Institutions' appetite for prediction markets has increased
Polymarket and Kalshi, the 2 leading prediction market platforms, have seen their valuations soar as volumes on their respective platforms have increased in the previous couple of months.
On October 7, Intercontinental Exchange, the parent company of the world's largest stock exchange NYSE, invested $2 billion in Polymarket, valuing the corporate at $9 billion.
Meanwhile, Kalshi has raised $300 million in its Series D funding round. The company was valued at $5 billion and included participation from Sequoia Capital, Andreessen Horowitz, Paradigm, CapitalG, Coinbase Ventures, General Catalyst and Spark Capital.
These investments come at a time when the prediction market industry as a complete is growing rapidly, with weekly trading volume across all platforms reaching an all-time high, reaching $2.03 billion within the week ending Oct. 13, in keeping with a Dune dashboard.
