Prediction markets show an interesting liquidity concentration pattern. At its peak, one major prediction platform processed $12 billion in monthly volume, while a comparable platform only moved around $300 million—a stark gap that reveals how capital clusters around defined events. Unlike the fragmentation we see across 20,000 token launches daily, prediction markets funnel trader interest into finite outcomes, creating deeper order books. However, this efficiency comes with risks: traders in certain prediction bets saw losses exceeding 97%, suggesting that concentrated liquidity can amplify both gains and drawdowns when outcomes materialize.