Weekly notional trading volume for crypto-related contracts on Kalshi and Polymarket reached a record $2.7 billion last week, Bloomberg reported, citing Dune Analytics data. This surge was primarily driven by short-term price bets on Bitcoin and other cryptocurrencies, with crypto now ranking second only to sports on both platforms. As spot trading volumes decline, crypto exchanges are actively expanding their prediction market businesses; for example, Coinbase's product is powered by Kalshi. However, legal challenges to sports contracts in some U.S. states could impact crypto exchanges' willingness to further expand into prediction markets.