The total value locked (TVL) in decentralized prediction markets has reached a record $148 million, according to DefiLlama data. The sector has surged over 50% since mid-August, recovering from a dip to $93 million due to bearish sentiment in the broader crypto market.

Polymarket is the primary driver, accounting for over 80% of the total with $121 million in TVL. The platform's deposits have surged over 1,200% since the beginning of the year. Politics, especially the upcoming US election, is the hottest topic, propelling TVL figures to new records.

Another fast-growing platform, Predict Fun, launched in September and already has over $1.3 million in TVL. Azuro, the second-largest DeFi app in this sector, has $7.6 million in TVL, recovering from August lows.

Decrypt's parent company is building MYRIAD, an on-chain prediction market and digital media ecosystem, set to focus on crypto topics alongside politics.