Polymarket's growth is driving demand for stablecoins, particularly USDC, which plays a critical role in its settlement infrastructure. A report from Coinbase highlights that all trades on Polymarket settle in USDC on the Polygon network, creating significant demand for this dollar-pegged token. Unlike lending protocols that lock capital, prediction markets like Polymarket enable rapid fund cycling, settling and redeploying balances consistently. In May 2025 alone, the platform processed over $1 billion in trading volume, with daily active traders ranging from 20,000 to 30,000. Following the re-election of President Donald Trump in November 2024, monthly trading volume surged to $2.5 billion, leading to increased USDC transfers. The report notes that stablecoins now support real-time market infrastructure, with expectations for further growth driven by a new content partnership with X, which aims to make prediction markets more engaging. This reflects a broader trend in which stablecoins are becoming critical to the operational dynamics of crypto markets.

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