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    Sequoia Capital Places Large Bets on Solana Based NFT Marketplace Magic Eden

    Magic Eden’s $27 Million Funding Round

    According to recent reports, Magic Eden will announce $27 million in Series B. Sequoia Capital is leading the round. Paradigm Ventures, Solana Ventures and Solana Ventures are also investors. Although the platform has not disclosed its valuation, the latest capital injection will be used to expand its services.

    This latest news comes just weeks after Magic Eden teamed up with Overtime, a sporting entertainment platform, to launch an NFT collection. The aim is to increase fan engagement as well as provide exclusive experiences.

    Solana or Ethereum? The Next NFT Hub

    Sequoia Capital partner Shaun Maguire believes one of the world’s popular venues for NFTs – OpenSea – has a weakness since it mainly relies on a less efficient blockchain, Ethereum. Maguire, who is a startup, has high hopes for Magic Eden. Maguire said that he believes in Magic Eden.

    “The bet was that they would move fast and that they would capture that advantage before OpenSea would be able to go into Solana.”

    OpenSea also suffered from the negative press this year. The company’s trading volumes as well as sales have taken a significant hit. Hence, investors turning to newer platforms isn’t surprising.

    Data from CryptoSlam reveal that Solana raked up a total of $116,193,618 on sales in the last 30 days, During the same time, Ethereum’s figures stood at $1,865,220,512. Solana has so far attracted only retail investors who were greatly affected by the high Ethereum transaction fees.

    It is still early to speculate on Magic Eden’s dominance in the sector at a time when NFT sales have gone down tremendously. While Magic Eden dominates NFT trade on the Solana blockchain, overall, it’s still only the ninth-largest NFT marketplace.

    Zhuoxun Yin (co-founder), a former Coinbase product manager is positive that Solana has some advantages over Ethereum. This includes areas such as video gaming, where NFTs are expected be traded frequently. According to the executive,

    “Gaming NFTs will be on places like Solana. They’re not going to be on Ethereum.”

     

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