Ethereum
Ethereum Price Prediction Market Launches on PancakeSwap – With AI
As the 2024 US presidential election approaches, crypto-based prediction market PolyMarket is seeing a surge in activity. Decentralized Exchange Pancake swap announced on Wednesday the launch of a prediction market focused on a single question: will the price of Ethereum increase or decrease?
And they will bet for or against predictions made by artificial intelligence (AI).
“We’re always exploring ways to create unique experiences for our users,” said Pancakeswap’s pseudonymous product manager, Chef Gyoza. Decrypt“Adding AI to prediction markets was a logical step.”
The PancakeSwap prediction market will be based on Arbitrum and invites users to predict ETH price movements every 10 minutes, according to the announcement. Rewards for correct predictions will be distributed from a prize pool of 60,000 ARB (approximately $49,600 at the time of writing) over the next nine weeks.
PancakeSwap tapped decentralized AI network provider Allora to provide the AI predictions, which the exchange said showed 65% accuracy in testing.
The beginnings of PancakeSwap AI Prediction Market comes as the crypto market waiting for launch of Ethereum spot ETFs in the United States, and coincides with record activity on PolyMarket, which bills itself as the world’s largest prediction market.
While the PancakeSwap platform focuses on a single issue, PolyMarket supports countless bets on a multitude of topics.
From June 27, Polymarket reached a record monthly trading volume of $93.55 million and 26,560 monthly active users. The platform’s main prediction focuses on the winner of the 2024 US presidential election, with over $185 million wagered so farCurrent odds give Donald Trump a 60% chance of winning, while Joe Biden has a 34% chance of winning.
“Prediction markets are attracting a lot of attention around the US presidential elections because of their ability to focus market mechanisms on specific events,” said Nick Emmons, co-founder of Allora. Decrypt“These are powerful tools for bringing together collective knowledge, especially when elections attract widespread attention.”
He said AI brings an important new dimension to the space.
“AI’s ability to efficiently process large data sets introduces a new type of trader to interact with these markets,” Emmons said.
With tonight’s presidential debate between Joe Biden and Donald Trump, the crypto community will be watching with keen interest. Support cryptoa grassroots advocacy group that empowers crypto users, has gathered signatures to urge CNN to ask the candidates about crypto during the debate.
While public opinion polls continue to be the primary indicator of public opinion, Emmons said that could change.
“Over the next six months, prediction markets will likely see increased activity as election-related events unfold. This increased interest will familiarize a broader audience with prediction markets,” he said. “As a result, people will increasingly view these markets as a more definitive source of collective knowledge across a growing set of domains.”
Edited by Ryan Ozawa.