TechFlame News: According to CertiK's "2026 Skynet Prediction Market Report," the prediction market saw its trading volume surge to $63.5 billion in 2025, marking a fourfold increase, with Kalshi, Polymarket, and Opinion emerging as the dominant platforms. However, this rapid growth has introduced new risks, including oracle vulnerabilities, administrator key misuse, and Web2.5 architecture issues. The report notes that while prediction markets have been recognized as legitimate financial products in the United States through a CFTC ruling, they are banned in several EU countries as unauthorized gambling. Additionally, varying regulations across U.S. states may further complicate compliance. In December 2025, a security incident involving Polymarket’s third-party authentication provider exposed centralized failure points in hybrid Web2/Web3 architectures. The study also estimates that during peak airdrop periods, artificial trading volume on some platforms reached 60%, severely distorting liquidity metrics. CertiK predicts that in 2026, prediction markets will witness enhanced technical privacy and accelerated institutional adoption. However, platforms must simultaneously address challenges such as liquidity maintenance, security infrastructure development, and revenue model sustainability to achieve long-term growth.