While the Non-Fungible Token market has lost much of its appeal since peaking two years ago, Magic Eden has reached new heights, according to CEO Jack Lu.
“Despite the slowdown in the entire crypto market, this year has actually been a pretty good year for Magic Eden. 2024 is actually our best year yet,” said Jack Lu.
When Magic Eden launched in September 2021, the Non-Fungible Token market saw $4.2 billion in volume . At the time, Magic Eden was not on the list of the most prominent Non-Fungible Token projects because the most successful projects were operating strongly on Ethereum.
Offering only Solana Non Fungible Tokens in its early days, Magic Eden pioneered a Multi-Chain approach to trading digital collectibles as the Non-Fungible Token market cooled. Now in its third year, the exchange supports digital collectibles on Bitcoin, Ethereum, Polygon , and Base.
Splitting across different networks, Jack Lu said the company has identified two things that Non-Fungible Token owners value: content and convenience. While the latter requires complex technology, he said users will gravitate toward platforms that Vai as a one-stop shop for digital assets.
As of last month, Non-Fungible Token volume had dropped to $373 million, down 91% from when Magic Eden entered the Non-Fungible Token market. However, Lu said Magic Eden has achieved a 70% revenue share in the Non-Fungible Token market, thanks in part to its presence on multiple chains.
“We’ve invested heavily in this Multi-Chain thesis. If we can become the platform that provides scope across all those chains, we’ll ultimately win,” he said.
Magic Eden’s biggest competitors are OpenSea and Blur, which have also expanded their services to include other networks. Aside from Solana, all are EVM-compatible, meaning developers familiar with writing Ethereum smart contracts can leverage similar code.
Notably, Magic Eden jumped right into the Ordinals market, a class of Bitcoin-based collectibles that emerged last year. While this environment is very different from its Solana roots, Magic Eden has expanded further into the Bitcoin space with support for Runes.
Runes are like ERC-20 fungible Token on Ethereum. In May, when the Runes market was heating up, Jack Lu estimated that Magic Eden's monthly volume reached $800 million. Despite a surge in Runes activity in August, activity related to them has largely died down.
Having a large network is beneficial when crypto trends can change quickly, Jack Lu said, comparing the recent industry craze for memecoins to the food Token that were popular in DeFi a few years ago. Similarly, he said Magic Eden's newly launched digital wallet puts the company in a position to address broader parts of the crypto market with support for cross-chain swaps.
“Markets go up and down, trends change. If we want to build great products that can actually achieve our mission, we have to have a long-term vision.”
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