DWF Ventures’ research note said it expects the market’s user composition to have changed significantly since 2024. Early users dominated by information advantages and high-conviction trading are being diluted by a larger retail crowd driven by entertainment and high-odds return. The article said that in Polymarket and Kalshi, information-based trading categories such as politics, elections, and economic themes have fallen in share of trading volume from about 73% and 96% during the 2024 US election to currently less than 20% and 5%, respectively, while sports and parlay trading shares have risen. DWF Ventures believes that the RFQ parlay structure has information asymmetry, which could cause prediction markets to deviate from their “truth engine” positioning, but higher entertainment-oriented trading volume may also bring deeper liquidity and a broader user base.