While the NFT market has lost a significant amount of steam since its peak two years ago, the marketplace's Magic Eden is reaching new heights of its own, CEO Jack Lu said.
The year was good for Magic Eden, he said, although the overall market was a bit soft. Decrypt (Video below). “2024 is truly our best year ever.”
According to Magic Eden, the NFT market will see $4.2 billion in trading hands in JPGs when it launches in September 2021. Crypto Islam. At the time, Magic Eden was banned from some of the NFT market's largest number of projects.
Solana only offered NFTs in the early days, when the NFT market cooled, Magic Eden pioneered a multi-chain approach to trading digital collections. Entering its third year, the marketplace has added support for digital collections on Bitcoin, Ethereum, Polygon and Base.
By dissecting countless networks, Lu's company has identified two things that NFT owners value: content and convenience. Although it can be a heavy technical lift, Lu says users are attracted to platforms that act as a one-stop shop for digital assets.
As of last month, NFT trading volume has dropped to $373 million, representing a 91% drop since Magic Eden arrived on the NFT market. Still, Lu said that Magic Eden achieved a 70% revenue share in the NFT market, partly due to its presence on multiple chains.
“We've invested a lot in this multi-chain theory,” he said. “If we can be the platform that provides the distance between all these chains, we will win in the end.”
Magic Eden's biggest competitors, OpenSea and Blur, have expanded their offerings to include other networks. With the exception of Solana, all are EVM-compatible, meaning developers who know how to write Ethereum smart contracts can use equivalent code.
Especially Magic Eden He jumped feet first Market for Ordinals, a segment of Bitcoin-based collections that gained popularity last year. While the environment is very different from its Solana-based roots, Magic Eden has gone deeper into the Bitcoin space Support for Runes.
Runes are similar to tokens like ERC-20s on Ethereum. When the runes market heated up in May, Lu estimated that the monthly trading volume of Mamat Eden reached $800 million. While there is an explosion of runes activity in August, there is mostly activity associated with them. He fell.
Taking on a large network is useful when crypto trends can change on a dime, Lu said, comparing the recent industry-wide meme coin mania to decentralized finance that popularized food tokens years ago. Along the same lines, Lu said Magic Eden's recently launched digital wallet has positioned the company to address broader segments of the crypto market by supporting cross-chain exchanges.
“Markets go up and down, metas change,” Lu said. “If we want to build the best products, we have to have a level of long-term thinking that can reach our mission.”
Edited by Ryan Ozawa.
Daily Debrief Newspaper
Start every day with top news stories, plus original features, podcasts, videos and more.
