Jake Nyquist outlines seven key areas where new prediction markets can differentiate themselves in an increasingly competitive landscape. With numerous prediction markets expected to launch by 2026, Nyquist suggests that new entrants must focus on product quality, asset variety, capital efficiency, oracle reliability, liquidity provision, regulatory compliance, and their strategic approach—either vertical or horizontal. Product quality is vital, as many existing platforms suffer from issues like poor user experience and unreliable APIs. New markets can attract users by providing a superior interface and transparent fee structures. Asset variety is also crucial; while most current markets focus on sports and crypto, niche offerings could draw in traders looking for unique betting opportunities. Capital efficiency allows traders to use their collateral more effectively, which can be enhanced by offering yield on deposits or flexible margin options. Nyquist emphasizes the importance of reliable oracles for market resolution, as inaccuracies can undermine trust. Liquidity is another critical factor; exchanges can incentivize market makers or adopt innovative liquidity models. Regulatory compliance offers new opportunities, especially in regions where existing laws limit current platforms. Finally, the choice between a vertical approach, which integrates user experience tightly, and a horizontal strategy, which focuses on robust infrastructure for third-party developers, shapes how these new markets will operate and compete.