Crypto Gambling Defies Slump with Record Q1 Volume
The crypto gambling market defied the broader market downturn by generating $14 billion in Q1 2026, according to TRM Labs. This figure held near record levels despite a correction in the overall crypto market.
Prediction markets overtook on-chain gambling for the first time on record, posting $36.6 billion in volume against gambling's $14 billion. Both sectors experienced rapid growth throughout 2025, with gambling reaching $51 billion and prediction markets climbing to $54 billion.
The sector's strength can be attributed to stablecoins, which account for about 70% of all on-chain gambling volume since 2022, totaling $117 billion out of the $169 billion total. On TRON, USDT makes up 94% of gambling flows, providing a stable deposit that shields players from price swings.
TRM Labs found that retention drove the growth in the sector, not new users. New wallet inflows have dropped about 54% since late 2022, while returning wallets grew around four times over the same period. A TRM spokesperson said that the surge came from the 'sticky and expanding activity of a loyal user base.'