Polymarket traders: 3% drive price discovery, others fund gains

A recent study analyzing Polymarket trades from 2023 to 2025 reveals that a small, elite group of traders significantly influences market prices. Approximately 3% of accounts are responsible for the majority of price discovery on the platform. This suggests that while many users participate, their collective activity primarily serves to subsidize the profits of these skilled traders. The findings highlight a concentration of expertise and market impact within a minority of participants on the prediction market platform, indicating a potential imbalance in trading dynamics.