Prediction markets may help low-cap altcoins gain traction in 2026.

By late December 2025, prediction markets recorded more than $4.5 billion in weekly notional volume, with Kalshi responsible for about $1.7 billion. Rising trading activity and institutional interest are seen as possible support for low-cap altcoins tied to that sector.

Prediction markets have grown steadily and are drawing wider attention as 2026 approaches. By late December 2025, these platforms recorded more than $4.5 billion in weekly notional volume, which industry sources reported as a new marker for the sector. Institutional interest and clearer regulatory movements have accompanied this expansion. That change in market conditions could support some low-cap altcoins that are connected to prediction market infrastructure and marketplaces. What we know so far: - Weekly notional volume topped $4.5 billion by late December 2025. - One platform, Kalshi, was reported to account for about $1.7 billion, roughly 38% of weekly activity. - November 2025 monthly trading volume reached approximately $9.5 billion, ahead of meme coins (about $2.4 billion) and NFTs (about $200 million). - On-chain data cited roughly 279,000 weekly active users and about 12.67 million weekly transactions. - Several institutional moves were noted, including reports that Coinbase is preparing prediction market services and a Gemini affiliate has secured regulatory approval in the US. Summary: Growth in prediction markets is widening demand for platforms and the tokens that support them, which could improve visibility for related small-cap altcoins. Continued institutional entries and regulatory clarity may help sustain this momentum. Specific outcomes for individual low-cap tokens are undetermined at this time.