Polymarket Integrates Solana: Multi-Chain Win or Vampire Attack?

PolyMarket, the internet’s biggest prediction market, has enabled $SOL deposits, making it easier than ever for Solana network participants to use the platform.

While some Solana advocates have celebrated Polymarket’s integration, others theorize that the move could be harmful to the network long term.

What are the flaws of Polymarket’s newfound support for Solana, and could there be something more sinister at work?

Polymarket Welcomes Solana Deposits

Polymarket, a popular prediction marketplace witnessing $11B in cumulative volume, is now accepting native $SOL deposits. Through its latest integration, Solana users can now trade the outcomes of global events on the internet’s biggest blockchain-based prediction marketplace.

Polymarket became an overnight sensation in 2024, when the platform recorded all-time high trading volumes in the lead-up to the U.S. Presidential Election. The polarizing platform found itself at the centre of political discussion, with traditional media outlets referencing Polymarket alongside the nation’s most trusted polling systems.

 

Despite detractors claiming the protocol is plagued by foul play and easily manipulated, Polymarket is a remarkably accurate predictor of global events. 

Dune Analytics data suggests that Polymarket correctly predicts outcomes over 90% of the time, even as far as one month out from market settlement.

Polymarket’s latest integration with Solana looks like a definitive win for the network. While $SOL deposits make it easier than ever for users to jump into markets, Polymarket’s newfound support could come at a cost to the Solana network.

Cross-Chain Abstraction or Liquidity Siphon?

Despite accepting deposits from Ethereum, Arbitrum, Base, and now Solana, Polymarket is built on the Polygon network. Whenever users deposit $SOL, or any other native asset from other chains to Polymarket, the protocol automatically sells those funds to $USDC and bridges them to the Polygon network.

By depositing Solana on Polymarket, Solana users are inadvertently selling $SOL for $USDC and sending those funds to Polygon. In time, this could diminish Solana’s TVL and slow the chain’s growth and momentum, particularly during prominent political events like the U.S. Presidential election.

While it would be inflammatory to assume that Polymarket is deliberately supporting $SOL deposits to maliciously siphon users and liquidity from the Solana blockchain, the two networks have a checkered history. 

Polygon co-founder Sandeep Nailwal infamously suggested in 2023 that he didn’t see a future for Solana and other Layer-1 networks like Avalanche, Aptos, and Cardano. Today, all these Layer-1s have a higher market capitalization than Polygon.

Meanwhile, Solana-native prediction markets have so far been unable to replicate Polymarket’s success. Solana projects like Hedgehog Market and Drift Protocol’s BET platform have struggled to retain users and witness consistent trading volume, suggesting that Solana’s onchain traders care little for prediction markets.

Read More on SolanaFloor

TradFi lines up to list Solana ETFs

Fidelity Joins Solana ETF Race: Files 19b-4 Form via Cboe

Take Your First Steps into Solana DeFi