Polymarket has announced a collaboration with the AI search engine Perplexity to enhance the prediction market offering of the Polymarket. This partnership will incorporate Perplexity’s technology, offering prediction event summaries to users through search results.
The partnership comes as Polymarket sees a sharp drop in open interest, which dropped by 28% in the previous week. Perplexity will provide its 10 million users with summaries of prediction market events that are relevant to them. This integration is designed to enhance the user experience by including a question box for asking questions and functionality to share the result pages.
Polymarket achieves trading milestone
Furthermore, Polymarket will incorporate Perplexity’s Pages where users will be able to generate as well as share their individual pages for search queries. These pages will be placed on the Discover page of Perplexity, which will help increase content engagement and the interaction between users of both platforms.
Polymarket has recently achieved a significant achievement of $1 billion in trading volumes. Nevertheless, the platform’s open interest fell last week due to its largest one-day loss of $20 million. This decline is likely to be attributed to the general market trends and high liquidations that made forced many traders to close positions.
US Presidential election buzz drives Polymarket’s rapid growth and expansion
Polymarket has experienced a rise in its user engagement, especially during the US Presidential election. According to the data from a Dune dashboard, in July, the monthly trading volume on the platform exceeded $387 million. As it stands, August is poised to beat the previous month, with more than 44k active traders on the platform monthly.
This was spearheaded by the US presidential election, in which close to $600 million was spent on election outcomes. This increase in activity shows that Polymarket is becoming more significant in the decentralized prediction market space.
Perplexity also provides potential revenue opportunities for the search engine because it will now be a customer of the Polymarket API. The integration is anticipated to generate large revenue from API calls through the traffic generated by the user’s interaction.
Analyst Colin pointed out that the stability of the prediction outcomes is questionable, as a little money can change the game. Colin stated, “Polymarket is showing Kamala Harris leading Donald Trump by 6%. Yet, a mere $600,000 could shift this prediction, revealing the low liquidity and potential for slippage in these markets.”
