Onchain Gambling Defies Crypto Pullback With $14B Quarter: TRM Labs
TRM Labs says onchain gambling hit $14 billion in Q1 2026 and stayed near record levels despite the crypto market pullback.
Intelligence analysis by GPT-5.4 Mini
TRM Labs says onchain gambling and prediction markets kept growing through the 2025-2026 crypto correction. Gambling reached $51 billion in 2025 and $14 billion in Q1 2026, with repeat users and stablecoin flows helping support activity.
TRM Labs says crypto gambling kept growing even when the rest of crypto got shaky. It is like a crowded arcade that still stays busy because the same regular players keep coming back.
Analysis
Scale and resilience
TRM Labs said onchain gambling remained strong through the recent crypto market pullback. The firm put full-year 2025 gambling volume at $51 billion, then said quarterly volume hit an all-time high of $15 billion in Q4 2025 before staying at $14 billion in Q1 2026.
Prediction markets grew alongside gambling, but for the first time in Q1 2026 they pulled ahead. TRM said prediction markets reached $36.6 billion in volume in the quarter, compared with gambling's $14 billion. Even so, TRM said both categories stayed elevated during the broader 2025-2026 market correction.
Who is driving the activity
TRM said more than 2 million personal wallets interacted with gambling platforms from January 2022 through March 2026. It grouped those users into five behavioral buckets, from one-time "Dabblers" to "High Rollers."
The report said volume is still dominated by a small slice of high-value users. High Rollers made up 6.3% of personal gambling wallets but drove 91.8% of personal wallet gambling volume since 2022. At the same time, TRM said the fastest-growing groups were not only whales: Casual Bettors' monthly volume rose from $17 million in January 2022 to $188 million by March 2026, and Daily Grinders' volume rose 12x over the same period.
Risk profile
TRM said gambling platforms and prediction markets are converging on shared stablecoin infrastructure, but their risks differ. The company said prediction markets face more scrutiny over insider trading, while gambling services are more exposed to money-laundering risk. TRM's message is that controls should match the specific activity, not treat the two markets as identical.
Key points
- TRM Labs said onchain gambling reached $51 billion in 2025 and held at $14 billion in Q1 2026.
- Prediction markets overtook onchain gambling in Q1 2026 with $36.6 billion in volume.
- More than 2 million personal wallets used gambling platforms from January 2022 to March 2026.
- High Rollers were 6.3% of wallets but generated 91.8% of personal wallet gambling volume.
- TRM said gambling and prediction markets share stablecoin infrastructure but face different crime risks.
If the trend continues, onchain gambling could remain a durable source of activity for crypto networks even during weak markets. The growth in casual bettors and daily grinders also suggests the user base is broadening beyond a few big spenders.
TRM's own report shows gambling volume is highly concentrated in high rollers, so the sector still depends on a small number of heavy users. The article also flags money-laundering risk, which could invite tougher controls or scrutiny if activity keeps scaling.
