Key Takeaways Traditional firms are expanding their presence as crypto prediction markets attract deeper liquidity. Retail activity helped draw market makers, institutions, and larger deposits into event contracts. Regulatory disputes may shape how prediction markets enter broader financial infrastructure. Traditional Finance Builds Crypto Prediction Market Rails Major exchanges and financial firms are accelerating work on crypto prediction markets as event-based contracts gain institutional liquidity. Blockchain analytics firm Chainalysis said May 7 that inflows have risen sharply since September 2024, helped by retail activity, market makers, and institutional participation. The trend shows prediction markets moving from niche crypto speculation toward financial …