Study Reveals Wash Trading Inflates Polymarket Activity

According to BlockBeats, a recent study by Columbia University researchers highlights that trading activity on Polymarket, a popular prediction market, is significantly inflated by 'wash trading.' This practice involves users frequently buying and selling the same contracts in a short period. The study concludes that this phenomenon, referred to as 'artificial trading' by researchers, has varied over time but has averaged about 25% of Polymarket's total trading volume over the past three years.