During the dog days of summer, Polymarket’s election betting surged on (correct) speculation that the Democrats would make a “hot swap” of Joe Biden for Kamala Harris as their presidential candidate. Trading volume grew and grew through the fall. All along, doubts lingered about whether the platform’s trader base would hold steady after the ballots were cast.

On Election Day, the research arm of gaming and VC giant Animoca put out a report with a bold prediction: there’s nothing for Polymarket to worry about. The crypto-based prediction market, according to the report, had a significant base of non-election bettors to carry it through.

Naturally, there would be smaller numbers – what can be as captivating as a political face-off involving Donald Trump? – but it’d be a far cry from a ghost town. Three-quarters of Polymarket users, Animoca noted, trade contracts unrelated to the election.

A month later, that analysis is looking right.

A key data point to track is the open interest on Polymarket. Open interest, which is the total value of active positions in Polymarket’s prediction markets, reflects the platform’s liquidity, user activity, and overall market engagement.

Data from a Dune Analytics dashboard shows that while open interest hit peaked just above $475 million on Election Day – and, predictably, significantly declined in the days after – it has been ticking back up in the last week.

The data shows open interest dropped to a low of $93.91 million on November 12, then slowly climbed to $104 million by November 15 and further to $115.25 million by November 30. These aren’t bad numbers for Polymarket by any means, because this is where open interest was in mid-September, when election fever was in full swing.

Similarly, daily volumes, while down sharply from their $367 million peak the day after the election, have plateaued in the mid- to high eight figure range, which is still higher than they were in September.

The next metric to look at is the number of active wallets on the platform.

In the last week, this metric – which reflects the number of traders active on the platform – has been hovering around the mid-30,000 mark, which isn’t substantially lower than the weeklong run-up to election day, when there were an average of 39,100 active wallets at work.

And is Polymarket reliant on a few whales to drive volume? Not really.

Data shows that around 60% of all bets are coming in under $100, and only 5.8% of bets are between $1,000 and $5,000.

Polymarket is here to stay, but dark clouds remain. It needs to work through its legal issues, which may soon be resolved if President-elect Trump installs a crypto-friendly financial regulatory regime.

Influencer Mea Culpa

A social media influencer involved in a Kalshi plot to bash Polymarket and its founder, Shayne Coplan, has apologized for a post in which he called Coplan the “n-word” and said he “look[ed] guilty.”

“I was doing other business with Kalshi and just tweeted it,” Antonio Brown wrote on X (formerly Twitter) Saturday. “I want to say sry to Shayne Coplan.”

Earlier, Clown World, an influencer account that regularly tweets Kalshi-related content, deleted a post calling Coplan and convicted fraudster Sam Bankman-Fried lookalikes.

Kalshi’s CEO, Tarek Mansour, has previously declined to comment on the record.

Markets Missed Biden Pardon

Hunter Biden, the wayward son of President Joe Biden, was pardoned Sunday, a move that surprised many – including traders on Polymarket.

The pardon covers all offenses committed in a ten-year period between January 1, 2014, and December 1 of this year, a statement from the White House reads. This covers Hunter’s tax and gun charges – in addition to any undetected crimes.

Before the pardon announcement, contracts representing the yes side of the question were trading around 28 to 30 cents, reflecting a 28% to 30% chance a pardon would happen. Now that the White House has confirmed the executive grant of clemency, these contracts shot up to 100%, which means they will pay out 1 USDC, each worth $1, per share.

The market was skeptical a pardon would happen, given multiple pledges by the President that it would not.

In June, the elder Biden promised to respect a jury decision regarding a gun charge and not pardon his son. At the time, the market was giving a 12% chance of a pardon.

Data aggregator Polymarket Analytics shows that the top holder of the yes side, a user who goes by “PollsR4Dummies” took home $223,472 on his bet of $87,740.

The polling skeptic is also holding two long-shot yes positions, betting that Fox News personality Pete Hegseth will be confirmed as Secretary of Defense, currently at 32% given recent sexual assault allegations, and that the Fed will cut interest rates three times in 2024 (the market gives this a 29% chance).