Kalshi has revolutionized the prediction market landscape by transitioning its event contracts to the Solana blockchain, effectively enhancing operational efficiency and accessibility.

This strategic move integrates U.S.-regulated markets into decentralized finance (DeFi), enabling Kalshi to better compete with existing platforms like Polymarket while aiming for increased liquidity and a more extensive user base.

Transition to On-Chain Prediction Contracts

Now functioning as SPL tokens, Kalshi’s event markets provide users with the ability to trade outcomes directly via crypto wallets. Integration with Solana’s DFlow and Jupiter protocols allows participants to access automated liquidity and execute trades efficiently.

This shift empowers users to trade, lend, and utilize contracts in various DeFi environments. To support this transition, Kalshi has launched a $2 million grants initiative, encouraging developers to create custom applications that drive trading volume.

Kalshi’s leadership views this tokenization process as a pivotal long-term initiative, offering benefits such as increased speed and transparency while adhering to CFTC regulations. Their blend of decentralized liquidity with an off-chain matching engine presents a unique market solution.

Can Kalshi Capture Market Liquidity and Challenge Rivals?

The prediction market sector has seen dramatic growth in 2025, with total volume approaching $28 billion. Kalshi reported impressive volumes of $5.8 billion in November, compared to Polymarket’s $3.7 billion, aided by favorable regulatory developments.

Liquidity remains a critical factor for competition. By adopting the Solana token standard, Kalshi anticipates the participation of automated market makers and trading bots, which should enhance pricing accuracy and reduce spreads.

Furthermore, the increase in privacy through wallet-based trading eliminates the need for identity verification, making the platform more appealing to users. Experts suggest that this could put Kalshi directly in competition with Polymarket’s on-chain system.

The Role of Solana in Multi-Chain Prediction Systems

Kalshi envisions its Solana integration as just the beginning of a more extensive on-chain architecture. Future plans include collaborating with EVM-compatible networks and deeper integrations with existing DeFi protocols to foster a multi-chain prediction ecosystem.

Already, partnerships with companies like Zero Hash and the support for stablecoin custody from Coinbase demonstrate a commitment to enhancing global accessibility of prediction markets.

With a recent valuation jump to $11 billion following significant funding rounds, Kalshi indicates strong confidence in the future of tokenized prediction markets as the definitive method for forecasting real-world events and related derivatives.

As the landscape of prediction markets transitions towards decentralized models, Kalshi’s developments signal a transformative moment in the relationship between regulated platforms and crypto liquidity, setting the stage for more robust competition in the industry.

Cover image from ChatGPT, SOLUSD chart from Tradingview