Meta is reportedly developing a new prediction markets platform called Arena as it explores fresh avenues for growth beyond its core social media business.
According to a June 23 report from the New York Times, Arena would allow users to make predictions on real world events using points instead of real money, at least during its initial phase. The platform is expected to operate independently from Meta’s major apps, including Facebook, Instagram, WhatsApp, and Messenger.
Sources familiar with the project told the New York Times that while Arena is still in development, it is a major focus for Mark Zuckerberg. The app is expected to launch with a points based system similar to gaming mechanics, though future versions could potentially include real money wagering.
Arena is one of several standalone products currently in development at Meta. Another project, reportedly called Meta Photos, focuses on using artificial intelligence to create new forms of media.
Meta’s push into standalone apps reflects a broader challenge facing the company. As Facebook and Instagram increasingly prioritize short form video content, there is less room within those platforms to experiment with entirely new product categories. This has pushed Meta to seek opportunities outside its existing ecosystem.
This is not Meta’s first move into prediction markets. In 2020, the company launched Forecast, a crowdsourced prediction platform introduced during the early stages of the COVID 19 pandemic. Like Arena, Forecast relied on a points based model. However, the app was discontinued in 2022.
Over the years, Meta has repeatedly pursued emerging digital trends with mixed success. The company has attempted to replicate features from rivals such as Snapchat and TikTok, while also experimenting with apps focused on podcasts, travel, and matchmaking. Many of those initiatives failed to gain meaningful traction.
This time, however, the market environment appears more favorable. Prediction markets have grown rapidly, with Kalshi and Polymarket together generating $51 billion in trading volume during 2025. That momentum has accelerated further this year, with combined trading volume already reaching $130 billion.
Investor interest in the sector has also surged. Kalshi recently completed a $1 billion funding round that valued the company at $22 billion. Meanwhile, Polymarket was reportedly seeking $400 million in funding earlier this year at a valuation of $15 billion. Analysts at Bernstein project that annual prediction market trading volume could reach $1 trillion by 2030.
Competition in the sector is becoming increasingly intense. Several crypto companies have already launched their own prediction market products. Binance added prediction market functionality to its wallet earlier this year, while Hyperliquid introduced macro prediction markets soon after. Other major players, including Coinbase and Crypto.com, have also expanded into the category. Trump Media has likewise announced plans to enter the space.
Despite the sector’s rapid growth, regulatory and ethical concerns remain. Federal prosecutors recently charged a US Special Forces soldier with allegedly using classified information to place bets on Polymarket tied to a secret operation involving Venezuelan President Nicolás Maduro, reportedly earning $400,000.
Concerns around market integrity have also emerged. Blockchain investigator ZachXBT recently warned that Rain Protocol, a prediction market project valued at nearly $9 billion, may be showing signs of on chain price manipulation.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
