Prediction Market Volumes Set to Surge to $1 Trillion by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 15 2026
0mins
Should l Buy HOOD?
Source: seekingalpha
- Surge in Market Volume: According to Bernstein's report, prediction market volumes are projected to reach $240 billion by 2026, representing a 370% increase from last year, indicating strong growth potential with an expected annual trading volume of $1 trillion by 2030.
- Platform Performance: Kalshi and Polymarket, the two largest prediction market platforms, have seen a year-to-date trading volume of $60 billion, surpassing the total volume of $51 billion for all of 2025, showcasing rapid market demand growth.
- Improving Regulatory Environment: Despite increasing regulatory scrutiny, analysts believe platforms like Kalshi and Polymarket will benefit from growing alignment with federal regulators (SEC, CFTC), enhancing market legitimacy and mainstream adoption.
- Positive Investor Reaction: Following these reports, Robinhood (HOOD) shares rose by 10% and Coinbase (COIN) increased by 6%, reflecting market optimism regarding the future growth of prediction markets.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 88.430
Low
130.00
Averages
156.24
High
181.00
Current: 88.430
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Investment Scale: Robinhood Ventures Fund I announced a $75 million investment in AI giant OpenAI, which, while relatively small compared to OpenAI's multibillion-dollar funding rounds, marks one of RVI's largest investments to date, highlighting its focus on transformative companies.
- Market Demand: This investment reflects the strong appetite among retail investors for exposure to leading AI companies like OpenAI, as excitement around artificial intelligence continues to dominate markets, particularly as high-growth tech firms delay IPOs, making early access highly sought after.
- Strategic Significance: Robinhood's investment not only provides its investors with access to cutting-edge technology companies but also underscores its core mission to offer everyday investors opportunities to participate in companies shaping the future, further solidifying its position in the retail investment space.
- Historical Context: This investment follows a high-profile spat between Robinhood and OpenAI, where last summer OpenAI publicly opposed Robinhood's plans to offer tokenized equity, indicating strategic differences between the two companies.
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Market Performance: Robinhood shares have extended gains following a report about the company's investment in OpenAI.
Investment Details: The report highlights that Robinhood has invested $75 million in OpenAI, contributing to a 4% increase in pre-market trading.
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Regulatory Approval: Robinhood has received approval from Singapore regulators to offer brokerage services in the region.
Expansion Plans: This move marks Robinhood's expansion into the Asian market, aiming to attract new users and diversify its offerings.
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- Robinhood's Expansion: Robinhood has received in-principle approval to launch its brokerage services in Singapore.
- Regulatory Milestone: This approval marks a significant step for Robinhood as it seeks to expand its international presence.
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- TE Connectivity Guidance Miss: TE Connectivity's stock dropped 12% as the company's second-quarter guidance of $2.65 EPS and $4.7 billion revenue aligned with FactSet consensus but failed to inspire investor confidence, leading to downward pressure on the stock.
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- Staggering Financing: OpenAI has just closed a $122 billion financing round, achieving an $852 billion valuation, with expectations that it could exceed $1 trillion at the time of its IPO, making it one of the largest and most anticipated IPOs in history.
- Retail Investor Access: With the launch of the Robinhood Ventures Fund, retail investors can now invest in OpenAI ahead of a potential IPO, as RVI trades on the market, attracting significant interest from investors.
- Portfolio Diversification: The RVI fund holds stakes in 10 private companies, including a $75 million investment in OpenAI, leading to a nearly 16% surge in RVI's share price, reflecting strong market interest in the AI sector.
- Future Challenges and Opportunities: Despite OpenAI's bright prospects, it faces competition from companies like Anthropic, significant cash burn, and $1.4 trillion in AI infrastructure commitments over the next eight years, which could impact IPO demand and market performance.
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