# Polymarket International Notional trading volume Methodology

## 1. Overview

Notional trading volume measures the total value of prediction market contracts executed on Polymarket International. The aggregate face value of all active positions traded by users is represented by this metric, indicating the contract scale of the platform's prediction markets. Since trading activity is directly correlated with liquidity and user engagement, market depth and the capacity to generate transaction-related activity are evaluated through this metric.

## 2. Data sources

- **Blockchain events**: `OrdersMatched` events from `Exchange` and `NegRiskCtfExchange` contracts (covering V1 and V2), covering Polygon
- **External data**: Asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Polymarket International orderbook trade extraction

- **Purpose**: Extraction of raw trade data and contract shares from matched orders
- **Logic**: `OrdersMatched` events are parsed from V1 and V2 `Exchange` and `NegRiskCtfExchange` contracts. For V1 contracts, when the maker asset identifier is zero, the taker filled amount is designated as the contract shares; when the taker asset identifier is zero, the maker filled amount is designated as the contract shares. For V2 contracts, when the trade side is zero, the taker filled amount is designated as the contract shares; when the trade side is one, the maker filled amount is designated as the contract shares.
- **Key fields**: `makerAmountFilled`, `takerAmountFilled`, `makerAssetId`, `takerAssetId`, `side`, `shares`

### Component B: Decimal normalization

- **Purpose**: Normalization of contract share quantities by asset decimal precision
- **Logic**: The extracted contract shares are joined with asset metadata. The raw share amounts are normalized by the decimal precision of the underlying collateral asset (USDC for V1 and pUSD for V2).
- **Key fields**: `shares`, `decimals`

### Component C: Daily aggregation

- **Purpose**: Aggregation of normalized notional trading volume to daily intervals
- **Logic**: The normalized contract share values are aggregated by day using UTC boundaries to produce the daily notional trading volume.
- **Key fields**: `block_timestamp`, `shares`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total USD value of derivative contracts executed on the protocol.

Notional trading volume

Prediction markets

Liquidity providers deposit funds into Polymarket and receive trading fees from traders (supply-side fees). Polymarket has also launched a new peer-to-peer order book with no liquidity providers involved.

Polymarket is a non-custodial prediction market protocol built on Polygon. Polymarket was founded by Shayne Coplan and launched in 2020.

Polymarket team & investors own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Polymarket's investors include Polychain, 1Confirmation, ParaFi Capital, etc.

Polymarket International

Notional trading volume

Notional trading volume

Chain breakdown