Crypto Integrations and Sports Betting Push Kalshi to Record Prediction Market Volumes

Kalshi, the largest prediction market globally, has entered a new phase of rapid expansion, posting record trading volumes even as legal and regulatory pressure intensifies across the United States. A December 2025 report from Foresight Ventures estimates that Kalshi’s annualized trading volume has jumped from roughly $300 million in August to between $40 billion and $50 billion by year-end, underscoring the speed at which the sector is scaling.

Momentum accelerated sharply in the final weeks of 2025. The platform processed $2.3 billion in trades in the week ending December 21 and recorded more than 27 million transactions during December alone. That is a new benchmark for prediction market activity.

Sports Drive Trading Growth

Much of this surge has been driven by sports-related event contracts. Markets tied to the NFL and the College Football Playoffs accounted for around 90 percent of Kalshi’s December trading volume. The growing overlap between prediction markets and professional sports has helped push the product into the mainstream, particularly among younger and digitally native audiences.

That integration became more visible in October when the NHL became the first major North American sports league to partner with prediction market platforms, including Kalshi. The relationship deepened further in December through a marketing agreement with the Chicago Blackhawks, marking the first direct partnership between a US professional sports team and a prediction market operator.

Crypto Partnerships Expand Reach Further

Kalshi’s growth has also been supported by deeper ties to the cryptocurrency ecosystem. In December, the company announced an integration with the TRON blockchain, aimed at bridging traditional financial markets with decentralized infrastructure. This followed earlier confirmation that Kalshi’s event contracts will be accessible directly through the Phantom wallet, one of the most widely used crypto wallets.

Kalshi is now likely to become the in-house prediction market for Coinbase. This could significantly expand distribution and liquidity by embedding event trading into a major digital asset platform.

Legal Challenges Gather Pace

Unsurprisingly, the company’s rapid expansion has not gone unnoticed by regulators. Several states argue that sports-related prediction contracts constitute unlicensed sports betting and therefore fall under state gambling laws. Kalshi disputes this classification, maintaining that its contracts are in line with federal regulation derivatives that the Commodity Futures Trading Commission oversees rather than being gambling products.

The operator is currently appealing unfavorable rulings in Nevada and Maryland, while also facing a class-action lawsuit alleging it operates an illegal gambling business. Additional challenges from other states and tribal authorities could surface in 2026 as regulators test the boundaries of their jurisdiction.

Tax Pressure and Industry Outlook

The dispute is currently the culmination of tensions across the US betting landscape, where states have increasingly relied on gambling taxes to plug budget gaps. Tax rates on traditional sportsbooks now exceed 50 percent in jurisdictions such as New York, New Hampshire, and Rhode Island, raising questions about long-term sustainability.

Despite these headwinds, industry watchers remain confident that prediction markets are here to stay. Comparisons are increasingly drawn to earlier digital disruptions such as daily fantasy sports and cryptocurrency, where regulatory uncertainty failed to halt adoption.

With record volumes, expanding media partnerships, and growing cultural visibility, prediction markets appear to have crossed a critical threshold. While regulatory battles will probably intensify, Kalshi’s trajectory suggests that demand, innovation, and scale will continue to drive the sector forward.