Ethereum’s co-founder Vitalik Buterin has sparked discussion in the crypto community with his recent comments on prediction markets.
Bulletin left his comments on a post on Farcaster saying that lack of interest granted in prediction markets makes them unappealing for hedging.
He attributed this lack of interest to missing out on steady returns. He said that around 4% annual percentage yield, available from stable, dollar-based assets are lost in the process.
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Vitalik Buterin, however, remains optimistic.
“I expect lots of hedging use cases to open up once that gets solved and volumes increase more,” he added.
He suggests fixing this issue could unlock a wave of new hedging opportunities and boost trading volumes.
His remarks come at a time when Polymarket, a leading prediction market platform, saw its trading volume dip to $1.06 billion in July 2025, down from $1.16 billion in June.
Despite the drop, Polymarket’s user base grew, with active traders increasing to 286,730 in July from 242,340 in June 2025.
