Polymarket, the largest onchain prediction market, is reportedly raising funds at a valuation of $3 billion as it enhances its platform by integrating with Chainlink, a leading oracle provider. This partnership aims to streamline the resolution process for market outcomes related to asset prices, promising “near-instant” settlements and improved accuracy.
Currently, the resolution times on Polymarket can extend to hours, depending on specific market conditions. By incorporating Chainlink’s data standard, Polymarket aims to enhance its operational efficiency. Sergey Nazarov, co-founder of Chainlink, emphasized that this integration represents a significant advancement in the creation and settlement of prediction markets, asserting that reliable data and secure computations from oracle networks can transform prediction markets into trustworthy, real-time indicators.
In addition to this partnership, Polymarket is actively seeking new funding, with reports indicating that at least one investor has presented a term sheet valuing the prediction market at around $10 billion. This valuation comes in the wake of a recent governance dispute linked to the market resolution for the “Will President Zelenskyy Wear a Suit” question. In this case, a collective decision via the UMA protocol determined that the outcome should be “No,” despite expert opinions suggesting otherwise. This resolution stirred discontent among traders who were affected by the decision.
Polymarket plans to continue utilizing UMA for settling market disputes while relying on Chainlink’s oracle services for swift settlements in data-backed scenarios. Launched in 2020, Polymarket experienced a substantial growth surge in 2024, driven in large part by interest surrounding the U.S. presidential election, peaking with a monthly volume of $2.5 billion in October 2024. Despite a decline from those peak figures, the platform currently sustains a monthly trading volume of around $1 billion, representing a notable increase compared to its activity throughout 2023.
