Polymarket experienced declining user metrics throughout 2025 but positioned itself for a potential comeback through strategic preparations for re-entering the US market.
The prediction market platform’s monthly active users fell from a January peak of 454,664 to 193,023 by Aug. 26, marking the lowest count since October 2024, according to Dune dashboard data from Varrock VC founder Richard Chen.
Active and New Users Decline
New user acquisition declined even more significantly over the same period. Monthly new accounts reached 408,804 in February before plummeting to 117,386 the following month.
Despite a brief recovery to 145,736 new accounts in May, the platform registered only 54,257 new users by Aug. 26, the smallest figure since July 2024.
These falling metrics contrasted sharply with Polymarket’s trading performance. Platform volumes reached $7.9 billion as of Aug. 26, less than $500 million shy of the entire 2024 year-to-date total of $8.4 billion.
The disconnect between user engagement and trading activity suggested existing users maintained high transaction volumes despite the shrinking user base.
The platform’s exclusion from the US market since January 2022 created a significant headwind for growth.
A CFTC settlement required Polymarket to block American customers, forcing the company to rely primarily on international users for expansion.
Federal Investigation Closure Opens US Market Door
US federal investigators closed parallel criminal and civil probes into Polymarket on July 15, issuing letters that ended inquiries by both the Justice Department and the Commodity Futures Trading Commission.
The investigations examined whether American users continued accessing the platform through virtual private networks after the 2022 settlement.
Authorities escalated scrutiny following the November election season, when Polymarket processed roughly $2.6 billion in volume.
Agents raided CEO Shayne Coplan’s SoHo apartment eight days after the vote, seizing his phone as part of the investigation.
Coplan denounced the search as regulatory overreach tied to the outgoing Biden administration’s stance on digital asset companies.
The CEO later celebrated the probe’s closure, stating that Polymarket “cooperated and engaged” with authorities and “has been cleared of any wrongdoing.”
Strategic Acquisitions Position Platform for US Return
Polymarket moved quickly to capitalize on regulatory clarity. On July 21, just six days after investigators closed their probes, the platform acquired the holding company behind QCX LLC and QC Clearing LLC for $112 million.
The acquisition secured CFTC-regulated exchange and clearinghouse licenses, enabling compliant US operations.
QCEX founder Sergei Dobrovolskii spent four years obtaining approvals as a designated contract market and derivatives clearing organization.
Coplan called the acquisition “the foundation to bring Polymarket home,” emphasizing that domestic access would allow traders to price current events “with regulatory clarity and confidence.”
The purchase provided immediate regulatory infrastructure rather than requiring years-long licensing processes.
Dobrovolskii stated that combining QCEX’s licenses with Polymarket’s order flow could “change the way people access and understand information” in regulated markets.
Political Connections Strengthen US Market Strategy
Polymarket added significant political backing on Aug. 26 when Donald Trump Jr. joined the platform’s advisory board.
His venture capital firm, 1789 Capital, made a strategic investment in the prediction market, although the financial terms remained undisclosed.
Trump Jr. praised Polymarket’s ability to “cut through media spin and so-called expert opinion by letting people bet on what they actually believe will happen in the world.”
The partnership brought political expertise as the company prepared to expand its US operations.
CEO Coplan characterized the 1789 Capital investment as reinforcing Polymarket’s role as a trusted information source. The strategic partnership timing suggested coordination with broader US market re-entry plans.
US Market Access Could Reverse User Decline Trends
American traders represented a significant untapped market for Polymarket’s growth ambitions.
The platform’s current international user base generated substantial trading volumes despite declining headcount, indicating strong per-user engagement metrics.
Re-entering the US market could provide the user acquisition boost needed to reverse declining trends in monthly active users.
Regulatory compliance through the QCEX acquisition eliminated the primary barrier preventing American customers from accessing the service.
The combination of federal investigation closure, strategic acquisitions, and high-profile advisory board additions positions Polymarket for potential user growth recovery through US market expansion.
Source: https://www.thecoinrepublic.com/2025/08/27/polymarket-us-market-re-entry-could-reverse-platforms-user-decline/
