Analysis
How Different Sectors Move Capital on Polymarket
A Deep Dive into Platform Velocity
PeterAnalyst
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Polymarket has become a leading hub for predictive betting, where markets thrive on current events. But not all sectors on the platform move alike. One of the best ways to measure trader activity and capital rotation is through platform velocity — specifically, the 7-day moving average (7D MA). This metric captures how quickly funds circulate within each sector, giving us a unique lens into user behavior.
USDC velocity on Polymarket measures how quickly funds move between wallets and markets. It is calculated as a 7-day average of trading volume relative to traders’ wallet balances and total open interest on the platform. For example, a velocity of 2 means that for every $1 held on the platform, $2 worth of USDC is traded per day on average. Since it reflects how actively capital is being deployed, velocity serves as a strong proxy for trader engagement.
Higher velocity implies quicker turnover of positions, often reflecting reactive trading or short-term speculation. Lower velocity suggests that traders are making more deliberate, conviction-based bets. The baseline typically sits around 0.2 but rises sharply in the lead-up to major global events, such as the U.S. elections on November 7 or the selection of a new Pope on May 5. These spikes signal bursts of activity driven by traders looking to capitalize on information asymmetry and growing demand as outcomes approach.
Platform velocity is calculated as the volume traded relative to the capital held on the platform. A higher velocity indicates that money is moving quickly, reflecting active speculation, short-term trading, or quick turnover of positions. A lower velocity implies a more passive or deliberate approach.
By analyzing the 7D moving average of this metric across different sectors, we can see just how differently traders behave depending on the theme of the market.
Among all the sectors, Sports consistently leads with the highest platform velocity. Since early April 2025, Sports markets have maintained a baseline velocity around 0.03 to 0.04, occasionally spiking above 0.05.
Notably, there was a surge on April 15, when the velocity jumped to 0.051, coinciding with major sporting events like playoff qualifiers and international tournaments. These peaks indicate a reactive and dynamic trading base that adjusts quickly to game outcomes and event timing.
Outcomes in sports are also often influenced by earlier matches—such as qualification rounds—or unexpected developments like suspensions, injuries, or managerial changes. These factors create more uncertainty and drive faster, more reactive trading behavior in sports markets.
Platform-level velocity data from July 2024 to present shows Sports at a median of 0.008, making it the second-highest contributor after Politics. More recently, in the last 30 days, Sports climbed to 0.029, again trailing only Politics. Segment-level median velocity for Sports stands even higher at 0.051, suggesting intense activity within particular sports markets.
On average, Sports maintained a platform velocity nearly twice as high as most other sectors, highlighting the quick turnover of positions and active speculation.
The Politics & Global Affairs segment exhibits more erratic but sharp movements. Its velocity typically hovers around 0.02 to 0.03, but it spiked significantly to 0.048 on May 7, possibly due to election-related developments or breaking news.
Platform-level velocity shows Politics as the highest contributor both over the long term (median of 0.031) and in the past 30 days (0.046). Segment-level velocity isn’t far behind either, peaking at 0.042.
These spikes don’t last long, suggesting that traders rush in to capitalize on information asymmetry and exit just as fast. This "burst-and-fade" pattern characterizes a market where news and speculation are tightly interwoven.
The Crypto segment shows a steady but moderate platform velocity, mostly ranging between 0.015 to 0.025. Unlike Sports or Politics, Crypto markets tend to attract continuous trading with smaller swings.
This steadiness implies that traders here are likely positioning around longer-term narratives, such as ETF approvals, regulatory shifts, or macro movements in the broader digital asset market.
Even during the broader market volatility in early May, Crypto’s velocity remained consistent, suggesting a more conviction-driven cohort of traders. Platform-level median velocity for Crypto stood at 0.003 since July 2024 and rose to 0.014 in the past month.
Though less prominent in terms of total volume, Climate and Religion segments revealed surprising velocity figures when using the segment-level formula.
Climate hit a segment-level median velocity of 0.252 over the last 30 days — the highest among all categories — thanks to highly active micro-markets like daily weather predictions (e.g., “Will it be 65°F in New York tomorrow?”). These markets are thinly capitalized but see frequent trades, inflating their velocity values.
Religion surged to 0.173 in the same time frame, following the death of Pope Francis and the election of Pope Leo XIV. Markets predicting the new Pope’s diplomatic or travel plans — such as “Will Pope Leo visit Turkey first?” and "Will Trump meet Pope Leo XIV before August?" — reached velocities as high as 1.94, driven by sudden speculation.
These examples demonstrate that high velocity doesn’t always mean high volume, but rather intense trading in a small pool of capital.
With an average velocity below 0.01, Entertainment sees much slower capital rotation. Occasional peaks barely exceed 0.015, indicating limited speculative bursts.
This trend implies either fewer active markets or a smaller, more passive user base. The topics here might not generate rapid shifts in sentiment, leading to more subdued trading behavior.
Rounding out the analysis, Society & Culture shows the flattest and lowest trendline. With velocities hovering around 0.001 to 0.002, capital in this sector barely moves.
There was a slight bump to 0.0026 in mid-April, but this remains significantly lower than any other segment. These markets likely appeal to long-term ideological bettors or niche cultural events that don’t trigger fast reactions. Segment-level velocity recently reached 0.130, hinting at some isolated engagement.
Platform velocity tells us more than just how much people are trading; it reveals the tempo of engagement, the emotional cadence of the market, and the speculative culture within each sector.
For traders and observers alike, tracking these shifts helps map not just where the action is—but why it behaves the way it does.