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Messari's protocol reports give you a deep dive on the foundation and state of top crypto protocols, including key metrics and notable events. See the complete list of protocol reports here and get a preview of our latest report below.

  • A user-driven security network focused on preventing scams, malicious contracts, and risky transactions across Web3.

  • Transaction Simulation API launched: real-time, multichain transaction risk analysis for wallets, apps, and institutions.

  • Ecosystem profit grew +32.5% QoQ to $4.5M, driven by higher API usage and Chrome extension adoption

  • 500M GPS Security Fund introduced: dual staking + bounty system that rewards security contributors and incentivizes user-led intelligence

  • Layer-1 smart contract blockchain using Liquid Proof-of-Stake (LPoS) for consensus

  • Token: XTZ (tez) is the native asset used for staking (“baking”), delegation, governance, and fees on L1 and on the Tezos-based L2

  • Tezos L1 transactions rose 21.5% QoQ; contract calls also increased, signaling healthier base-layer activity

  • L1 fees climbed 16.9% QoQ to 17,460 XTZ, while Etherlink L2 fees fell 36.7% QoQ to 50,220 XTZ as its Kernel 4.1 upgrade doubled gas throughput and lowered effective costs

  • VeChainThor is a Layer-1 smart contract platform launched in 2017, focused on real-world enterprise and sustainability use cases

  • Daily active addresses: +85.2% QoQ to 62.8k; daily new addresses: +54.4% QoQ to 40.9k

  • +32.3% QoQ to 370k, ending a two-quarter decline and reflecting broader onchain usage

  • ~81.5% of gas now from EVM-based transactions, with EVM gas consumption up ~51% QoQ

From Our Sponsor

Prediction markets like Polymarket and Kalshi have evolved into meaningful forecasting infrastructure, processing over a billion dollars in cumulative volume and drawing attention from analysts, funds, and institutional users. Yet one structural bottleneck remains: liquidity is still thin and overwhelmingly human-driven, and humans don’t scale.

Source: Why Prediction Markets Haven’t Joined DeFi’s Parabolic Run by @Kaleb0x

Prediction Markets Today: Accurate, But Human-Limited

Prediction markets translate beliefs into price: a contract at $0.72 implies a 72% probability the event occurs. Liquidity-adjusted studies show they outperform polls and expert surveys by roughly 20 – 30%. But their ceiling is still set by their participants. Humans are slow processors of information, inconsistent forecasters, episodic liquidity providers, and prone to bias, sentiment swings, and fatigue.

The world now updates millions of times per day across news, datasets, social feeds, and onchain signals,  human bandwidth simply can’t keep up. AI can.

 How AI Reshapes Prediction Markets

  1. Parallel Information Processing: LLMs and ML agents can ingest news, economic data, social sentiment, and onchain activity simultaneously, reacting at machine speed.

  2. Continuous Liquidity: Autonomous agents can quote markets 24/7, arbitrage mispricings, and tighten spreads without behavioral drift.

  3. Better Calibration: Models can be trained on proper scoring rules, Bayesian updating, and ensemble reasoning and they don’t fatigue or overreact.

The result is deeper liquidity, faster probability updates, and more stable markets.

 The InfoFi Flywheel

  1. AI ingests global information

  2. AI agents trade prediction markets

  3. Liquidity deepens → accuracy improves

  4. More users and protocols rely on market-generated probabilities

  5. More data flows in

  6. AI trains on richer data → improves again

This creates a self-reinforcing intelligence loop, where prediction markets become real-time information engines for both humans and autonomous systems.

 Why It Matters

 Prediction markets were theoretically elegant but practically under-scaled.
AI removes the participation bottleneck, increases liquidity, and improves calibration, while crypto ensures transparent, verifiable settlement.

Together they create a new coordination layer for crypto: a decentralized truth market where humans and machines interact through economically grounded probabilities.

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