Columbia Study Identifies Wash Trading in 25% of Polymarket Volume

A Columbia University study found that approximately 25% of Polymarket's trading volume over three years was artificially inflated through wash trading, according to blockchain analysis. Researchers identified that 14% of the platform's 1.26 million wallets exhibited coordinated self-dealing patterns. Artificial volume peaked at 60% in December 2023 before declining to 5% by May, with subsequent increases linked to speculation about a potential token launch.