The Ethereum price prediction market starts with Pancake Swap – with AI

As the 2024 US presidential election approaches, crypto-based prediction market Polymarket is experiencing a flurry of activity. Decentralized exchange Pancake Swap Wednesday announced the launch of a prediction market focused on one question: Will the price of Ethereum rise or fall?

And to compete with or challenge predictions made by AI.

“We're always looking for ways to create unique experiences for our users,” said Chef Giozza, PancakeSwap's brand manager. Decrypt. “Adding AI to prediction markets was a logical next step.”

The PancakeSwap prediction market will be based on Arbitrum, and invites userso Predicts ETH price movements every 10 minutes, by advertisement. Prizes for correct predictions will be distributed over the next nine weeks from a prize pool of 60,000 ARB (about $49,600 per text).

PancakeSwap tapped decentralized AI network provider Allora to provide AI predictions, with the exchange showing 65% accuracy in tests.

The beginning of the pancake swap AI prediction market It comes as the crypto market anticipates the launch of Ethereum spot ETFs in the US. It coincides with record-breaking activity on Polymarket, which bills itself as the world's largest prediction market.

While the Pancake Swap platform is focused on a single question, Polymarket supports countless swaps on many topics.

as a June 27, Polymarket recorded a monthly transaction volume of $93.55 million and 26,560 monthly active users. The platform's top predictions focus on the winner of the 2024 US presidential election and beyond. $ 185 million bet so far. Current odds give Donald Trump a 60% chance of winning and Joe Biden 34%.

“Speculation markets are gaining a lot of attention in the US presidential election for their ability to focus market mechanisms on specific events,” said Allora co-founder Nick Emmons. Decrypt. They are powerful tools for gathering collective knowledge, especially when elections attract wide attention.

AI brings an important new dimension to the space, he said.

“AI's ability to efficiently process vast data sets will introduce a new type of trader to interact with these markets,” Emmons said.With tonight's presidential debate between Joe Biden and Donald Trump, the crypto community will be watching with anticipation. Stand with CryptoA grassroots advocacy group that advocates for crypto users, has collected signatures to urge CNN to ask its candidates about crypto during the debate.

While polls remain the primary measure of public sentiment, Emmons said that could change.

“In the next six months, prediction markets may see increased activity as election-related events occur. This heightened interest will introduce a wider audience to prediction markets,” he said. “As a result, people see these markets as complementary. A more transparent source of shared knowledge in a growing set of domains.”