Blockchain-based prediction markets are gaining traction among crypto traders as they seek returns beyond traditional spot cryptocurrency holdings, according to a report by 10X Research. These markets are becoming a speculative arena where casual retail participants compete against data-driven professionals, creating significant information asymmetry and arbitrage opportunities. While sports betting dominates these platforms, events related to Bitcoin and other cryptocurrencies are offering niche opportunities that traders are increasingly exploring. The report highlights that prediction markets can provide asymmetric payoffs, appealing to quantitative traders. For example, on Polymarket, traders are betting on whether the BNB token will reach $1,500 by the end of 2025, with "Yes" shares trading at $0.01, suggesting a potential 100x payout. However, concerns about insider trading have emerged, with accounts like 'AlphaRaccoon' and 'ilovecircle' showing high win rates, possibly due to the use of AI bots and machine learning models for cross-niche arbitrage and auto trading.