A CNBC analysis found that roughly 70% of all closed markets saw under $10,000 in reported volume from 2021 to the end of May this year. Low-volume markets can be more volatile and costly for traders.
On the Polymarket platform, the majority of closed individual markets never surpassed $10,000 in reported volume. Read more here.
New traders can also be left vulnerable in low-volume markets because spreads between buying and selling can blow out:
Academics note that thin markets are less appealing to seasoned traders:
Bots dominate over 80% of volume in shallow markets:
