Prediction Markets Soar as Crypto VC Focuses on Scalable Infrastructure
Crypto venture capital is concentrating its bets on prediction markets, according to a recent report by CryptoRank Research. The average investment size in this sector stands at $118M per round, more than 50% higher than the figure for exchange category.
This indicates that funding in prediction markets is driven by a limited number of large deals rather than broad activity at early stages. In contrast, the exchange category shows stable demand with the largest median investment size at $23M and the second-largest average investment size at $76.2M.
The report suggests that investors are favoring business models with clearer revenue paths and direct links to real-world trading or financial infrastructure. Exchanges, brokerage platforms, stablecoins, payment systems, and compliance receive some of the largest typical investments.