Crypto Gambling Sector Posts $14B in Q1 Trading Volume as Market Downturn Continues: TRM Labs
Blockchain analytics firm TRM Labs reports that onchain gambling activity totaled $51 billion throughout 2025, maintaining strength through crypto market decline thanks to loyal user base and stablecoin transaction flows.
For the first time, prediction markets have surpassed onchain gambling in quarterly volume, logging $36.6 billion during the first quarter of 2026 versus $14 billion for gambling platforms, new data from TRM Labs reveals.
The blockchain intelligence firm disclosed in a report published Wednesday that this transition came after both industries experienced significant growth. Throughout 2025, onchain gambling generated $51 billion in total volume, while prediction markets accumulated $54 billion, bringing both sectors to similar magnitudes as 2026 began.
However, onchain gambling continued to maintain activity levels close to historical peaks. The gambling sector hit an unprecedented quarterly high of $15 billion during the final three months of 2025, subsequently maintaining $14 billion in volume through the first quarter of 2026.
Both onchain gambling platforms and prediction markets demonstrated resistance to the wider cryptocurrency market downturn. Transaction volumes for both sectors stayed elevated throughout the market correction spanning 2025 and 2026.
A representative from TRM Labs explained to Cointelegraph that gambling transaction volumes have experienced growth during the current market decline due to the "sticky and expanding activity of a loyal user base."
This does not mean anything about concentration risk in itself, since there is quite a large gambling user base. It shows how a consistent user activity can insulate an industry from a market pullback and in fact drive growth.
TRM Labs spokesperson
Gambling and prediction markets face different risks
According to TRM, while gambling platforms and prediction markets are moving toward shared infrastructure built on stablecoins, each faces unique challenges related to financial crimes.
Platforms like Polymarket and Kalshi function as prediction markets, facilitating peer-to-peer wagering on binary event outcomes, whereas gambling services including Stake, WINk and Rollbit mirror conventional casino operations, establishing their own odds and retaining a house advantage.
According to TRM's analysis, prediction markets face heightened concerns regarding insider trading activities, whereas gambling platforms confront greater exposure to money laundering threats.
Gambling services and prediction markets carry distinct inherent financial crime risks, and firms should calibrate controls accordingly.
TRM Labs spokesperson
Casual bettors drive growth alongside whales
According to TRM's findings, over 2 million individual wallets engaged with gambling platforms during the period spanning January 2022 through March 2026.
The research categorized these participants into five distinct behavioral segments. "Dabblers" completed five transactions or less before going inactive within one month, whereas "Casual Bettors" logged an average of 18 transactions spread over eight days of activity. "Event Chasers" demonstrated periodic engagement tied to significant sporting competitions, while "Daily Grinders" maintained gambling activity on a minimum of 30% of days throughout their active period. The "High Rollers" category, representing the most valuable user segment, averaged $13,558 per individual wager and accumulated $378,000 in total gambling volume over their lifetime.
The research revealed that transaction volume shows significant concentration among the highest-value participants, with High Rollers accounting for 6.3% of individual gambling wallets while generating 91.8% of total personal wallet gambling volume since 2022.
Nonetheless, TRM emphasized that the most rapidly expanding user segments extend beyond just high-stakes gamblers. Monthly volume from Casual Bettors grew from $17 million in January 2022 to $188 million by March 2026, while Daily Grinders experienced a 12x increase in volume across the identical timeframe.