Magic Eden NFT marketplace journey
Launched on September 17th, 2021, Magic Eden is the largest and most popular NFT marketplace on the Solana blockchain. Its pros are its low transaction costs and no fees for listing NFTs. It also stands out with its usability, community-focused features, and diversity of projects.
In June 2022, the project made headlines when it raised $130 million in a Series B funding round, bringing its valuation to $1.6 billion. The funding round was co-led by Electric Capital and Greylock and included investors like LightSpeed Venture Partners, Paradigm, and Sequoia Capital.
Three months prior, it had raised $27 million in its Series A funding round led by Paradigm, Sequoia, and Solana Ventures. Its $1.6 billion valuation put it on par with the Series B of OpenSea, another popular and leading NFT marketplace on the Ethereum blockchain.
According to a press release, the money raised will be allocated to expand its primary and secondary marketplaces, look into multichain opportunities, and improve its products, among other things.
Since its launch, its primary marketplace, Launchpad, has launched over 250 projects, while its secondary marketplace has more than 7,000 listed collections. According to a statement from Solana, the platform’s secondary marketplace is responsible for 92% of NFT volume on Solana.
Magic Eden expands to Ethereum
True to their word, in August 2022, Magic Eden began its move to Ethereum. It has supported several significant ETH NFT collections, including Bored Ape Yacht Club and Pudgy Penguins.
According to its CEO and co-founder Jack Lu, going multichain had always been the plan. The company, however, decided to start with Solana because it looked like a frontier ecosystem at the time of its launch in 2021.
Lu admitted that there was worry among the platform’s team about how its SOL-centric audience would react to the announcement of its expansion to Ethereum.
When asked about the platform’s addition of the ETH protocol, Lu said, “For us to move from SOL to ETH, it was very natural.” Ethereum is the largest ecosystem in terms of the overall trading volume. It holds most of the highest-value projects and has plenty of users, which are pluses for the marketplace. Lu also added that there is a lot to learn from the blockchain ecosystem.
According to Lu, expanding to Ethereum is only the beginning for Magic Eden. There are plans to expand to many more blockchains in the future.
Author: Jay Jackson
Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.