The prediction market sector is experiencing a surge of interest, with numerous new platforms emerging to compete with established players like Polymarket and Kalshi. However, due to significant network effects and high entry barriers, many of these new entrants are expected to struggle. According to TechFlow, the true investment potential lies in the infrastructure that supports these markets, such as oracles, cross-market tools, settlement systems, and analytics. These foundational components are considered more defensible and scalable, offering potentially higher returns for investors than the platforms themselves. While the valuations of Polymarket and Kalshi continue to rise, suggesting limited future returns, infrastructure providers stand to gain from the overall growth of the prediction market ecosystem.