At 10 PM Beijing time tonight, Magic Eden's Token $ME will be open for airdrop claims. Currently, due to the news of Binance's listing, $ME's pre-market trading price on OKX has surpassed $6, corresponding to a circulating market cap of over $750 million.
The pre-market price can basically reflect the opening price of $ME after its listing on the CEX tonight, but as for the development of $ME's price in the period after the opening, players have written three completely different scripts from three different perspectives.
Perspective 1 - Solana's Second Non-Fungible Token Market (Benchmarked against $TNSR)
This perspective has basically been abandoned, because the circulating market cap corresponding to the pre-market price of $ME is already higher than the FDV of $TNSR, and is about 7 times the circulating market cap of $TNSR.
So why was $TNSR used as a benchmark before? Players who use $TNSR to benchmark $ME are more likely to be players focused on the Solana Non-Fungible Token market. On the Solana Non-Fungible Token, Magic Eden has indeed ceded the position of the first Non-Fungible Token market on Solana to Tensor.
However, from the statistical data on the number of users and trading revenue over the past 30 days, Tensor has not formed an overwhelming lead over Magic Eden. In the 30-day trading revenue, the two are only $15,000 apart, which can be said to be evenly matched. And in the 1-year trading revenue, Magic Eden is even leading Tensor by $3.6 million.
Perspective 2 - Bitcoin's First DEX
Those who take this perspective are basically players in the Bitcoin ecosystem. Although in everyone's impression, the Bitcoin ecosystem is just so-so, with only one of the top 10 Non-Fungible Token projects in terms of total market value being Bitcoin Puppets, and it just happens to be ranked 10th, with the rest being ETH Non-Fungible Token projects.
But for a long time before the recent rebound in ETH Non-Fungible Tokens, the Bitcoin Non-Fungible Token ecosystem may have been the most active. Magic Eden has a monopoly position in this ecosystem, and over the past year, only 26% of Magic Eden's 1.5 million users came from the Bitcoin network, but these users brought Magic Eden over $40 million in revenue, accounting for 69% of the total revenue over the past year.
In the past year, Magic Eden's revenue was $60 million, and this does not even include another monopolistic business of Magic Eden on Bitcoin - the Runes Token.
The Runes protocol is a new Bitcoin FT protocol that was only launched after the Bitcoin halving in April this year. Magic Eden charges a 1% buyer's fee on Runes transactions, and the total trading volume of the top 10 Runes tokens on Magic Eden is about $600 million. Just the top 10 Runes tokens by trading volume have brought Magic Eden $6 million in revenue in about half a year.
So from the perspective of Bitcoin players, Magic Eden is a giant on Bitcoin, and the Bitcoin ecosystem is also very promising in growth. In their eyes, the expectation for $ME will basically not be lower than $6.
Perspective 3 - The Second Hyperliquid
This is the most optimistic perspective, that is, "in a bull market, FDV is just a meme, only circulating market cap is meaningful".
The initial circulating supply of $ME is even smaller than $HYPE (only 12.5% initial circulation, i.e. 125 million tokens), and the token distribution is also well done, and it is also a project with strong profitability and growth potential. Based on these 3 points, the most optimistic group of players believe that $ME should become the second $HYPE and reach $40.
The profitability of $ME in the Non-Fungible Token market is leading by a wide margin, and on Bitcoin it is even positioned as a DEX. Without counting Runes, ME's revenue over the past year is already 20 times that of Blur, and Blur's current circulating market cap is about $760 million. In their respective tracks, $ME and $HYPE have both become leaders through profitability and expectations.
The problem with this perspective also exists, because $HYPE is "self-contained", pulling itself up on its own turf without listing on any Tier 1 CEX. While $ME has already confirmed listing on Binance, the only major CEX left is Coinbase and Upbit. Therefore, the objective environment of these two tokens is still very different, and it is not possible to simply draw an analogy that $ME will rise like $HYPE solely based on circulating market cap.
Conclusion
The above views are only the market opinions observed by the editor, and do not constitute any investment advice at all. In fact, everyone is looking for a supporting reason for their own sell-out or hold, but whether they can make it to the other side often depends on the vague correctness in hindsight.
I hope the above information can provide some help in finding a suitable $ME strategy for your own situation.
