Robert Steinadler, 10 months ago

Magic Eden - The rising star in Solanas NFT ecosystem

OpenSea is the biggest NFT marketplace in the world according to the dollar value of its transactions. It was in April when OpenSea added Solana NFTs and seems that traders and investors have taken interest in the option to diversify their NFT portfolios with art and collectibles that are native to the Solana blockchain.

But there is one special marketplace that is native to Solana and it is becoming increasingly popular. What is Magic Eden and is it going to become a challenger to OpenSeas market dominance?

Magic Eden offers early access

Magic Eden is not only a marketplace for NFTs but also offers investors to mint brand new NFT collections that are starting on the so-called launchpad of the platform. It is true that this is first and foremost a marketing opportunity for new projects that are seeking the attention of investors.

On the other hand, it is also providing an opportunity for early access to projects that haven’t received much attention but might turn out to be profitable investments in the future. Many NFT projects opt for a whitelist process that allows investors to mint throughout different stages with the last stage being the public offering.

While Magic Eden is not the only marketplace that builds on Solana it has become incredibly popular and it seems that investors are becoming more interested in collections that call the Solana blockchain it’s home.

More transactions than OpenSea

Last week Magic Eden managed to overtake OpenSea in terms of transactions. According to DappRadar, the volume on OpenSea had a total of 50.000 transactions and Magic Eden managed to beat that number with 275.000 transactions weekly.

Still, OpenSea remains the biggest marketplace since Solana NFTs lack the “blue chip” status, meaning that prices are relatively low. This results in a much higher dollar value of OpenSea transactions than on Magic Eden. The market leader also champions in terms of user base having over 41.000 active users which are almost double the size of Magic Eden. But that could possibly change in the future. One important factor that could contribute to that shift is the adoption of Solana NFTs by OpenSea.

It is possible that a situation could evolve where all the hidden gems are to be found on Magic Eden and later mature in terms of price on OpenSea. This could lead to an overall price increase of Solana NFTs.

Magic Eden is not the only marketplace

For now, Magic Eden remains on the top of the game when it comes down to the hit list of NFT marketplaces on Solana. Alternatives like Solanart remain but show much lower growth in terms of value that is transferred and user adoption.

This leaves Solana NFTs in an interesting spot. Non-fungible tokens have been more resilient during the decline of the market in 2022. This is especially true for high-value NFTs. Owning art or collectibles not only serves as a hedge but also as an opportunity to speculate in times when coins and tokens are behaving bearish.

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