DraftKings is pushing full steam ahead with its prediction market platform. In addition to ramping up advertising in states with no legal sports betting, it has launched 5-minute crypto markets.
The 5-minute markets went live this week, allowing users to wager on whether the price of Bitcoin or Ethereum will rise or fall over the next five minutes. DraftKings offers these through its partnership with Crypto.com, which self-certified the markets with the CFTC in April.
Very important for all of us to understand that 5 minute crypto markets aren’t gambling. Only very important hedging. pic.twitter.com/eOW9plw4fh
— Dustin Gouker (@DustinGouker) August 26, 2026
Polymarket also began offering the markets earlier this year in addition to its 15-minute markets. Kalshi offers 15-minute crypto markets and has expanded into gold, silver, and oil.
Short-Term Crypto Markets Explode in Volume
Kalshi and Polymarket first offered 15-minute crypto markets last year, and their volumes have grown exponentially. In April, the short-term markets accounted for more than half of the crypto trading on both platforms.
At Kalshi, 15-minute Bitcoin trading saw $643 million in volume in April, rising to over $4 billion in July. Adding in all cryptocurrencies, the 15-minute markets saw $4.69 billion in volume last month, more than 75% of the total crypto volume.
“Prediction market platforms have managed to take a speculative asset and inject even more mania into its trading,” said Amanda Fischer, policy director at investor advocacy group Better Markets, in comments to the Financial Times.
Amir Hajian, a researcher at crypto market-maker Keyrock, said the growth of the markets has been “explosive.” He added, “ Let’s just call it what it is: these [instruments] are pure speculation.”
Kalshi’s Expanded 15-Minute Markets Prove Popular
With the crypto markets proving popular, Kalshi launched the gold, silver, and oil versions at the start of this month. Within two weeks, they became the most popular markets on the site outside crypto and sports, as highlighted by Gaming America.
Gold is the most commonly traded commodity, and its daily trading volume continues to grow. It reached a new high of over $18 million on August 26, up from under $1 million when the market first appeared on August 4.
The quick resolution of the markets mimics casino gaming. One trader told Gaming America that he uses a random number generator to decide whether to go up or down.
Max Wojcik, an engineer, told the Financial Times that he uses AI chatbots — Claude, Gemini, and ChatGPT — to scrape weeks of price data and compare their results before trading.
As individual users aim to devise systems to carve out the odd payout, it’s the more sophisticated market makers that are hoovering up the profits. Hajian said that large trading firms target “microstructure inefficiencies” between exchanges, seizing on any discrepancies between platforms.
As more companies go live with their platforms, this creates further opportunities for cross-platform trading. ParlayX aims to capitalize on this by offering traders a centralized platform to keep track of their multiple accounts.
DraftKings Races to Build Super App
DraftKings has also said it will use prediction markets to trade and attract new users. The move into crypto markets, which are not offered on its sportsbook, represents a vertical it can capitalize on.
“Everyone is in a race to become the next super app to rule them all,” Fischer said. “Trad-fi is copying crypto, and vice versa.”
One of the first markets that DraftKings self-certified for its standalone exchange focused on microbets. This may allow the platform to offer wagering on short timeframes within sports games, such as the next play in football, the next pitch in baseball, or the next possession in basketball.
The company has ramped up advertising for its prediction market platform ahead of the new NFL season, particularly in states without legal sports betting. As it bids to compete with Kalshi, Polymarket, and other prediction market platforms, it is running a campaign offering large bonuses to entice users.
New @DraftKings state-specific ads went live in the past 24 hours across California, Florida, Georgia and Texas, offering new customers $200 after a $5 first trade.
The fine print explicitly mentions “Event Contract Trading is offered by DraftKings Predictions, a CFTC-registered… pic.twitter.com/XQZecNHFeG— Aldrin (@AldrinResearch) August 25, 2026
The battle for users in major states such as California is intensifying, with Kalshi increasing its lobbying efforts in the country’s most populous state. DraftKings’ launch has already attracted two lawsuits, with users alleging its sports prediction markets constitute illegal sports betting under California law.
The lawsuits against Kalshi and other operators threaten to derail the prediction market train, but for now, it remains full steam ahead as companies attempt to grab a piece of the action.
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