By Michael Scott
Decentralized exchange PancakeSwap unveiled an AI-powered prediction market to rival PolyMarket that witnessed a surge in activity in recent years as the US edges closer to the November 4 elections.
The decentralized crypto exchange PancakeSwap indicated on Wednesday, June 26, that it is launching a prediction market platform. The new addition will focus on whether the Ethereum price will increase or decrease.
The unveiling of the Ethereum price prediction by PancakeSwap emerges when the crypto-based prediction platform PolyMarket is witnessing massive activity as the 2024 US polls draw near.
The PancakeSwap platform will allow users to bet for and against the predictions presented by artificial intelligence (AI). A pseudonymous product manager, Chef Gyoza, hailed the launch as suggesting devotion to exploring means to generate unique user experiences.
PancakeSwap Unveils Prediction Market
Gyoza indicated that integrating AI into the prediction markets constituted a logical step. The product executive added that the PancakeSwap prediction market is running on Arbitrum.
The Wednesday announcement indicated that the platform invites users to forecast the ETH price movements. Users will have the opportunity to place their predictions every 10 minutes.
The predictors will earn rewards for the correct forecasts that PancakeSwap plans to distribute from a 60,000 ARB price pool, translating to $49,6000 in a nine-week timeline.
PancakeSwap is leveraging the decentralized AI network firm Allora to offer AI predictions. The decentralized exchange revealed that Allora-based AI forecasts had achieved a 65% accuracy during the tests.
The AI prediction market debut coincides with a period when the crypto community awaits the approval of S1 for the Ethereum spot exchange-traded funds (ETFs) listing in the US.
PancakeSwap scales to the prediction market as PolyMarket witnesses record-breaking activity. The crypto-based platform now touts itself as the most significant global market for prediction.
Unlike PancakeSwap’s platform, which focuses on a single inquiry, PolyMarket supports multiple wagers on diverse topics. By Thursday, June 27, Polymarket realized a record monthly trading volume priced at $93.55 million from the 26,560 active users.
The platform’s primary prediction captures the winner of the upcoming November 4 presidential election. The event has witnessed over $185 million bet where the current odds yield 60% win for Donald Trump against 34% for the incumbent President Joe Biden.
Allora co-founder Nick Emmons indicated that prediction markets are attracting attention to US presidential elections, given the ability to implement market mechanisms for particular events. The executive considered the prediction markets powerful tools to aggregate collective knowledge, given that elections are capturing widespread attention.
Prediction Market Popularity
Emmons indicated that AI yields critical dimensions to the market prediction space. Artificial intelligence can efficiently process vast datasets to accommodate new trader types interacting with the markets.
The presidential debate involving Trump and Biden attracted the crypto community. In particular, an advocacy group identified as Stand With Crypto, involved in empowering crypto users, revealed gathering signatures urging CNN to inquire about crypto in the initial debate.
The prediction market will rival the public opinion polls as the primary metric of public sentiment. Such will change as the prediction market gains entry.
Emmons considers that the prediction markets will witness huge activity as election-related events unfold. The heightened interest will inform the broader audience as more people increasingly perceive them as a source of collective knowledge on multiple domains.