Polymarket Raises $200 Million, Becomes Crypto's Newest Unicorn

Polymarket, the world's leading decentralized prediction platform, is approaching the completion of a $200 million capital raise, pushing its valuation beyond $1 billion.

This milestone will bring the platform into the prestigious "unicorn" club. Moreover, Polymarket has recently witnessed a recovery in trading volume and new user registrations following the US election.

Polymarket Nears $200 Million Raise, Targeting Unicorn Status

According to Reuters, Polymarket is preparing to complete a $200 million capital raise led by Peter Thiel's Founders Fund.

Data from Cryptorank shows that Polymarket has raised $74 million from 2020 to 2024. Prominent investors, including Ethereum co-founder Vitalik Buterin, have supported the platform's future.

Founders Fund led a $45 million Series B capital raise in May of last year. The current capital raise demonstrates the fund's continued commitment and long-term confidence in Polymarket.

The new capital is expected to help Polymarket expand its infrastructure, enhance product development, and address legal challenges, especially in the US, where the platform is currently banned due to gambling regulations.

Additionally, a highlight of Polymarket's development strategy is partnering with Elon Musk's social media platform X, announced on 06/06/2025.

This deal makes Polymarket the official prediction market partner of X. This integration combines Polymarket's predictive data with real-time analysis from Grok AI and X posts to provide users with deeper insights.

This partnership strengthens Polymarket's market position and gives it access to millions of users worldwide.

Monthly Trading Volume on Polymarket Recovers Beyond $1 Billion

According to dune analytics, May 2025 marks a strong comeback for Polymarket, with trading volume exceeding $1 billion. This occurs after an early-year decline due to post-election fatigue.

The platform also recorded over 100,000 new accounts monthly. It maintains a medium daily trading volume of $40 million, with around 20,000 active traders.

This revival reflects the community's growing confidence in the potential of decentralized prediction markets. This occurs against the backdrop of increasingly dynamic developments in both the cryptocurrency sector and the broader world.

While traffic to most cryptocurrency exchanges is declining, Polymarket's traffic has increased by 50%, from 10 million visits in March to over 15 million in May.

Despite growth, Polymarket still faces significant legal challenges. Recently, the US CFTC issued a subpoena to Coinbase seeking information related to Polymarket. It's worth noting that Polymarket has been inaccessible to US residents since 2022. This followed a $1.4 million settlement with the CFTC for operating an unregistered derivatives trading platform.

Polymarket has also encountered legal troubles in France for violating gambling laws related to prediction markets. Moreover, some believe that large investors might manipulate market prices, raising questions about the platform's neutrality.