Binance adds prediction market to its app for millions of users

Binance has added a prediction markets feature to its Binance Wallet, giving users a way to trade on the likelihood of real-world events without leaving the app.

The rolloaut connects Binance Wallet to Predict.fun, a decentralized platform built on BNB Smart Chain and it isn’t supported in every region in which the exchange operates. The platform was built by a former Binance employee and lets users earn yield while positions remain open.

Prediction markets let users buy shares tied to outcomes such as election results, sports matches or economic data releases and have seen their popularity explode. Prices range from $0.01 to $0.99 and reflect crowd estimates of probability.

Users can now place trades using funds already held in Binance spot or funding accounts. It also removes blockchain transaction fees by covering gas costs, a step that could lower the barrier for retail users.

Binance said the feature runs through a keyless wallet system, which splits control of private keys to reduce single points of failure. Users must create a separate prediction account to access the service.

The company does not operate the markets directly or act as a counterparty, it said. Instead, it provides access to a third-party application.

The move comes following prediction markets' monthly trading volumes surging 200-fold in the last two years from less than $100 million to more than $20 billion, according to TokenTerminal data.

Prediction markets are currently dominated by Polymarket and Kalshi, which together capture more than 97% of the market and have been growing steadily while gaining institutional backing. Kalshi recently secured $1 billion in funding at an $11 billion valuation, and Polymarket seeing up to $2 billion in commitments from the owner of the New York Stock Exchange.