This event, which had pushed the platform\u2019s total value locked (TVL) to new heights, has now led to a major outflow of funds. Polymarket\u2019s value locked plummeted by nearly 50%, from $511 million on November 6 to just $181 million. Despite offering zero fees and attracting considerable interest, the platform couldn\u2019t prevent the outflows.<\/p>\n
The decline in interest mirrors trends seen with other political betting tokens, which lost their appeal once their associated events were settled. Although Polymarket still offers a variety of political bets, these now occur at much lower volumes compared to the surge around the election. The large influx of high-stakes bets, particularly around Donald Trump\u2019s \u2018Yes\u2019 token, drove much of the platform\u2019s growth, with some whales contributing up to $70 million. However, with the election settled, sports betting has reclaimed the top spot on Polymarket.<\/p>\n
In response to the outflows, Polymarket hinted at an upcoming airdrop, though it failed to halt the cash-outs, especially from the platform\u2019s larger investors. The airdrop, which has been anticipated for some time, might target both small and large bettors, with the potential requirement to hold liquidity on the platform. The full criteria for the airdrop remain unclear, but it is expected that withdrawing earnings may disqualify some users.<\/p>\n