[Prediction Markets May See Scale Growth by 2025, 2026 Midterm Elections as Key Milestone] Prediction markets are expected to reach their largest scale in history by 2025, with Polymarket and Kalshi emerging as industry leaders amid capital influx, media attention, and multi-billion-dollar valuations. The 2026 U.S. midterm elections are considered a potential major trading opportunity, where the two companies will need to demonstrate the value of predictions in scaled scenarios. Despite growth in trading volume and user interest, the industry still faces controversies such as the authenticity of trading volume, limited revenue scale, and unclear regulatory boundaries. Meanwhile, platforms like Robinhood and Coinbase are entering the prediction market space, with sports betting and new contract formats raising potential risks of regulation and market manipulation.