Space, a new decentralized prediction market protocol on Solana, has indeed raised $3 million in funding to develop what it positions as the first 10x leveraged prediction market on the network.
Space allows users to trade YES/NO outcomes on real-world events (crypto prices, politics, sports, tech, culture, etc.) using up to 10x leverage, a central limit order book (CLOB), zero maker fees, and instant cash-outs. It includes gamified elements like ranks, leaderboards, referrals, and seasonal airdrops to boost engagement.
Built by the creators of UFO Gaming, a former top-100 project that reached a $1.5B+ market cap. The $3M came from seed and strategic rounds led by Morningstar Ventures and Arctic Digital, plus a highly oversubscribed (1,360%) community round on Echo.xyz and participation via Impossible Finance’s Curated platform.
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Reports mention support from entities like Kalshi, a major traditional prediction market player expanding to Solana and the Solana Foundation. Native token $SPACE is launching via public sale with mechanics including revenue share for buyback-and-burn to create deflationary pressure.
This positions Space as a hybrid of Polymarket’s event trading and Hyperliquid’s leveraged perps, optimized for Solana’s speed and low costs. Prediction markets have seen massive growth on Solana recently outpacing even memecoin volumes in some metrics, making leveraged versions a hotly anticipated addition.
While competitors like Drift’s BET or PolyPerps offer some prediction/perp features, Space emphasizes being the first fully integrated leveraged prediction market with these specific tools. Prediction markets have exploded in 2025, with total sector volume reaching $44 billion, Polymarket ~$21.5B, Kalshi ~$17.1B, others contributing the rest.
On Solana specifically, volumes have already surpassed memecoins by 1.8x in recent metrics, driven by low fees, high speed, and integrations like Polymarket/Kalshi tokenization. Space adds 10x leverage, a feature absent in most competitors (e.g., standard Polymarket or Hedgehog Markets).
This hybrid of prediction outcomes + perps-style leverage inspired by Hyperliquid could attract high-risk traders, potentially multiplying volumes further. Solana solidifies as the “home” for on-chain prediction markets, pulling liquidity from Ethereum/Polygon-based platforms like Polymarket’s core.
More TVL and activity could indirectly support $SOL price stability/growth amid 2025’s broader ecosystem expansions. Traditional prediction markets suffer from liquidity fragmentation and low returns on low-probability events. Space tackles this with: Central Limit Order Book (CLOB) for deeper liquidity.
Zero maker fees + instant cash-outs.
Gamification (ranks, leaderboards, referrals, seasonal airdrops). Leverage amplifies upside: A correct bet on a $0.35 YES share could yield massive returns with 10x exposure. Expect higher retention and speculative volume, similar to how leverage transformed perps on Hyperliquid/Drift.
Analysts compare Space to “Hyperliquid for predictions,” potentially capturing share from non-leveraged platforms. Sector-wide, this could push 2026 volumes beyond 2025’s $44B if evergreen markets— crypto prices, sports, culture dominate post-election hype.
50% of platform revenue allocated to buyback-and-burn, creating deflationary pressure.
No staking required for usage; rewards from trading/LP/activity + airdrops. Strong alignment for holders—real yield from fees could make $SPACE a revenue-sharing play. Success depends on volume capture; high adoption = sustained burns and price appreciation.
However, post-IDO dumps are common in Solana launches. Could fragment liquidity short-term but consolidate high-leverage traders on Space long-term. Winners: Degens seeking amplified PnL; losers: Slower, non-leveraged platforms.
Prediction markets proved real-world utility in 2024-2025 elections/economics, outperforming polls. Leveraged versions amplify gambling-like elements, potentially drawing regulatory scrutiny. Onboards more retail via gamification; bridges TradFi with DeFi. High leverage = higher liquidations/volatility; potential for manipulation in illiquid markets.
Crypto winters or regulatory clamps could hit hard. Space arrives at a peak moment for the sector—post-2025 hype sustaining via sports/crypto events. If it delivers deep liquidity and retains users, it could become a top Solana app, driving ecosystem growth. But execution risks remain high in crypto; leverage cuts both ways.