NFT Marketplace Magic Eden Raised $130M To Expand Beyond the Solana ecosystem

Magic Eden, a leading NFT marketplace based in Solana, has become a unicorn in just one year. It was launched last September. Its latest round of fundraising has increased its valuation to $1.6 million. Despite market slumps and downsizing, the founders pledged to increase its hiring efforts.

A Multi-Chain Ambition

Magic Eden – an NFT marketplace that has accounted for over 90% of the NFT volume on Solana – announced that it had raised an additional $130 million, with its valuation reaching $1.6 billion. According to Bloomberg, this is a roughly tenfold increase in its valuation from three months ago.

This news was made in the context of growing pessimism over crypto, as exchanges such as Coinbase and Gemini have been cutting their workforce to survive the long bear market. The company decided not to face the headwind and is ready to triple its workforce to 140, from its 50 current employees.

Jack Lu – co-founder of Magic Eden – said NFT transaction volume on his platform has continued to surge in the recent months though the price of SOL has been down more than 80% from ATH. He added that the company was profitable since its inception with $7.5million in revenue in May. The platform’s goal is to reach $100 million yearly revenue.

According to reports, Solana’s predominant platform is planning to raise capital to expand its primary marketplace and secondary marketplaces as well as support NFT creators.

Zhuoxun Yin is the COO of Magic Eden, and a former Coinbase product manger. He revealed that the marketplace will serve notable NFT projects outside the Solana network, and will support multiple blockchains in future. However, Yin didn’t specify which blockchain will be first deployed to the marketplace.

OpenSea is its main competitor and currently supports Solana Ethereum Klaytn and Polygon. It was valued at $13.3 million in January 2012. Dappradar reports that Magic Eden, which was founded less than one year ago, has grown to be one the three largest NFT marketplaces. Its primary platform – Launchpad – has over 250 projects, and its secondary marketplace has over 7,000 Collections.

Solana oder Ethereum

Sequoia Capital – the famed VC behind Magic Eden, previously expressed concern over OpenSea’s dominance in the NFT market, stating that the platform could take advantage of the Solana ecosystem before OpenSea expanded its services to the blockchain.

Solana has attracted primarily retail investors driven by the noticeable advantage of Solana’s low gas fee for processing NFT transactions. But the network is also well-known for its infrequent turnoffs, which are caused by technical difficulties. This can result in temporary suspensions of block production or processing transactions. Solana’s security is a top concern.

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