Jupiter, the Solana-based decentralized exchange aggregator, plans to fully deploy the new native prediction market service it is building with Calci in the fourth quarter.
Jupiter announced Wednesday that it has launched a beta version of the Jupiter Prediction Market. Karshi will provide liquidity to Jupiter’s new service, allowing users to bet on the outcome of events.
Why Jupiter entered the prediction market race
Kash Dhanda, chief operating officer of Jupiter Exchange, told Cointelegraph that Jupiter’s goal is to offer a wide range of services to users on a single platform, and prediction markets will also allow it to attract more users.
“Prediction markets represent a powerful evolution in the types of assets available on-chain, and we are excited to partner with Kalsi to bring them to Solana,” said Dhanda.
Dhanda said the prediction market is growing rapidly, which will lead to new users for the platform.
As of Q3, Jupiter had 8.4 million active users, an increase of 5% from the previous quarter, according to the Q3 Token Holder Report.
“As our prediction market grows, so does our reach, synergies between products, and revenue, all of which will be beneficial for JUP token holders in the long term,” Dhanda said when asked how the new prediction market will benefit token holders.
Danada said Jupiter will incorporate feedback from users to improve the product. He further said that the prediction market will begin in earnest during the fourth quarter.
“We will continue to iterate on the product and increase limits in line with the feedback we receive. More markets will be added and we will be preparing for a full launch in Q4,” Dhanda said.
Prediction markets in beta stage
The beta currently only offers one market: which F1 driver will win the next Mexican Grand Prix.
The global maximum number of contracts is set at 100,000, and individual positions are limited to 1,000 contracts.
Transactions in the first test market have now passed the $100,000 milestone, with F1 driver Max Verstappen leading the way, with around 46% of users predicting the Dutch-Belgian race car driver to win the event, followed by British race car driver Lando Norris in second place, with a 27% chance of him winning the event.
Institutional appetite for prediction markets is growing
Polymarket and Kalshi, two major prediction market platforms, have seen their valuations soar over the past few months as trading volumes on their respective platforms have increased.
Related: From South Park to Wall Street: Will prediction markets become mainstream?
On October 7, Intercontinental Exchange, the parent company of the world’s largest stock exchange, the NYSE, invested a total of $2 billion in Polymarket, valuing the company at $9 billion.
Meanwhile, Kalsi raised $300 million in a Series D funding round. The company was valued at $5 billion and included participation from Sequoia Capital, Andreessen Horowitz, Paradigm, CapitalG, Coinbase Ventures, General Catalyst, and Spark Capital.
These investments come at a time of rapid growth across the prediction markets industry, with weekly trading volume across the platform hitting a record high, reaching $2.03 billion for the week ending October 13, according to Dune’s dashboard.
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