The most popular NFT market on Solana, a blockchain that competes with Ethereum, is Magic Eden. It lets you sell non-fungible tokens (NFTs), which are unique crypto tokens that usually contain a link to a piece of digital art, music, or an in-game collectible.
The company said on August 2, 2022, that it is going multichain and will start offering Ethereum NFTs. However, as of this writing, Solana is its main ecosystem and blockchain.
Magic Eden: How to Use It
To use Magic Eden, you’ll need a Solana-compatible wallet (like Trust Wallet or Exodus Wallet) with enough SOL to pay for your NFT and the transaction fee on the Solana blockchain. Click “connect wallet” in the top right corner of the site—you don’t need to make an account—then click on a collection and bid on a project. It’s actually an interface for Solana NFTs, so any Solana NFT project is hosted on the platform.
As of this writing, Okay Bears, a collection of profile pictures of bears, has the most trading volume and the highest floor price among NFT collections. Like the market leader OpenSea, Magic Eden lets you sort collections by their features, in this case the bears’ hats, fur, and glasses. In the world of NFTs, attributes that are rare or have a lot of community value often sell for more SOL than attributes that are more common.
There is also an iOS app for Magic Eden. The app, on the other hand, only lets you browse. If you want to trade NFTs, you’ll have to go to the site in a web browser and connect your web3 wallet.
There are plans to add support for ETH to the marketplace. ETH is the native coin of Ethereum, which is the blockchain that most NFT trading takes place on. Magic Ezu, an NFT project that can be mined in either ETH or SOL, will be Eden’s first collection that uses ETH.
Magic Eden also sells Magic Tickets, which give access to a decentralized autonomous organization (DAO). In practice, this is a Discord chat where people can vote on how the market works.
The marketplace has a launchpad, which is a part of the site where projects can make NFTs on Magic Eden. The benefit for projects is that they are shown on Magic Eden’s website. This is similar to an artist selling their work at a major auction house like Christie’s. Magic Eden says that only 3% of projects that apply to the launchpad make it through the application process.
A decentralized exchange (DEX) called Raydium, which is based on Solana, uses the marketplace’s white-label marketplace.
History of Magic Eden and Important news
In September 2021, the marketplace was started by four friends: Sidney Zhang, the Chief Technology Officer and a former Uber Eats developer; Jack Lu, the CEO and a former FTX employee; Zhuoxun Yin, the Chief Operating Officer and a former Coinbase product manager; and Zhuojie Zhou, the Chief Engineer and a former Facebook developer.
In July 2022, Electric Capital and Greylock led a Series B funding round that brought in $130 million for Magic Eden. Paradigm and Sequoia Capital also put money into the company. The market was worth $1.6 billion after the funding round, which came after a $27 Series A in March.
A big wallet on Solana called Phantom wallet was broken into in August 2022. It said that Slope, another wallet provider that was also hacked, was to blame for the theft of close to $6 million from almost 8,000 wallets. Magic Eden itself was not changed in any way.
Magic Eden Compared to OpenSea
On Solana, Magic Eden has more trades than OpenSea, which is the market leader for trading NFTs and added Solana support in April 2022. According to a dashboard on Dune Analytics from SeaLaunch that gets trading data from the two platforms’ trading fees, Magic Eden gets 97–99% of the daily volume for Solana NFTs.
Still, OpenSea is still the biggest platform when it comes to the number of daily sales across all blockchains. At the time of this writing, Magic Eden trades about 55,000 SOL, which is about $2.1 million. OpenSea, on the other hand, trades about $15 million in Ethereum every 24 hours.
The main difference between the two markets is which one has the most powerful networks. Solana is in competition with Ethereum, so Magic Eden and OpenSea stay on top in very different ways. As of August 2022, the main difference between Solana and Ethereum is that it can be used faster and for less money.
The network’s token, SOL, was a favorite of venture capitalists and big players like FTX founder Sam Bankman-Fried and Three Arrows Capital, which went bankrupt but was once a popular crypto VC fund. When the crypto market crashed in 2022, SOL dropped from $258 in November 2021 to $26 in mid-June.