Prediction markets $113.8B Q2 volume as crypto falls

The cryptocurrency sector experienced a broad contraction in the second quarter of 2026, with one notable exception: prediction markets surged to record trading volumes, highlighting a significant shift in investor attention. According to data released on July 16 in CoinGecko's quarterly industry report, the total notional volume on prediction platforms reached $113.8 billion, marking the sector's strongest quarter on record.

This growth starkly contrasted with declines across nearly every other major segment of the digital asset market. Spot trading volume across the top ten centralized exchanges fell 27.9% quarter-over-quarter to $1.95 trillion. Perpetual futures volume contracted by 10% to $12.7 trillion, and the total stablecoin market capitalization declined 1.6% to $305.1 billion. The overall cryptocurrency market capitalization fell 12.6% to $2.1 trillion during the period.

Sports and political events were the primary drivers of prediction market activity. Trading momentum peaked in June, coinciding with the start of the FIFA World Cup, when monthly notional volume hit an all-time high of $50.7 billion-a 91.9% increase over the average of the previous five months....