Magic Eden: Everything to Know

By  Beluga Research September 3, 2023

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Summary

  • Magic Eden is a Solana-based NFT marketplace that has become one of the most popular in the world
  • It is known for its low fees, fast transactions, and strong community.
  • Magic Eden has various NFT collections, including gaming, art and collectibles
  • The platform also features a decentralized autonomous organization (DAO) that allows users to vote on platform governance decisions

Overview

Magic Eden is a Solana-based NFT marketplace that has become one of the most popular in the world. It was founded in 2021 and has quickly become one of the most popular NFT marketplaces.

Magic Eden offers various NFTs and is very user-friendly, making buying, selling, or minting easy. In 2022, Magic Eden processed over 1.5x more transactions than OpenSea, the leading NFT marketplace on Ethereum. It is a non-custodial marketplace, meaning users have control over their NFTs. It supports a variety of NFT formats, including ERC-721 and ERC-1155 tokens.

A Brief History

Magic Eden was launched on September 17, 2021, by four friends who discovered NFTs and tremendous potential. The co-founders are Zhouxun Yin, Sidney Zhang and Jack Lu. The platform quickly gained traction, with over 100,000 users and $100 million in trading volume in its first month. In December 2021, Magic Eden exited beta and became the leading NFT marketplace on Solana. In February 2022, Magic Eden launched its Launchpad program. The program provides creators with the tools and resources to mint and establish NFT collections.

Magic Eden raised $27 million in a Series A funding round led by Paradigm in March 2022. The funding was used to expand the platform's team and features to support the growth of the Solana NFT ecosystem. In April 2022, Magic Eden surpassed $1 billion in trading volume. In May 2022, the platform raised $21 million in a Series B funding round led by Sequoia Capital. The funding was used to expand the platform's reach and capabilities further.

Magic Eden raised $130 million in a Series B funding round in June 2022 at a valuation of $1.6 billion. This made it one of the most successful startups in the blockchain industry. The round was co-led by Electric Capital and Greylock Partners, with participation from Lightspeed Venture Partners, Paradigm and Sequoia Capital. Magic Eden expanded to support Ethereum NFTs in August 2022. In March 2023, the platform launched its Bitcoin marketplace and partnered with Ordinals to become the first audited, secure marketplace for Ordinals. The platform has attracted millions of users and hosts thousands of collections, such as Mad Lads, Meegos, Photo Finish and The Heist.

What is Magic Eden?

Magic Eden is a platform for digital art and collectibles. It is powered by the Solana blockchain, which is fast and low-cost. Magic Eden allows users to create, buy, sell and trade NFTs. Magic Eden has quickly become the leading NFT marketplace on Solana, with over $1 billion in trading volume. Low fees, fast transaction speeds, and strong community are hallmarks of the marketplace.

Magic Eden has a vibrant community of artists and collectors. It hosts various collections of NFTs, such as SolPunks, Degenerate Ape Academy, Aurory and many others. Users can browse, bid and mint NFTs on the platform. Users can also participate in auctions, raffles, and drops. Magic Eden also supports social features like chat, comments and likes.

Magic Eden aims to be the leading marketplace for NFTs on Solana. It offers a user-friendly interface, a secure wallet and a low commission fee. Magic Eden also supports the development of the NFT ecosystem by partnering with creators, projects and charities. The platform aims to define the future of NFTs by supporting digital creators and introducing new users to Web3. Magic Eden offers advanced filters, live activity, bulk listing and instant selling features for its users. Magic Eden is a community-centric platform home to the next generation of creators.

Getting Started

  • Create a Solana wallet. The first step is to create a Solana wallet. Users can also use a hardware wallet like a Ledger Nano X or a software wallet like Phantom.
  • Deposit SOL into the wallet. Users must deposit SOL into the wallet to buy NFTs on Magic Eden. Users can buy SOL on an exchange like Binance or FTX and then transfer it to the wallet.
  • Connect the wallet to Magic Eden. Once the user has created a Solana wallet and deposited SOL, the user can connect it to Magic Eden. Go to the Magic Eden website and click the "Connect Wallet" button in the top right corner.
  • Browse the NFTs for sale. Once the wallet is connected, users can browse the NFTs for sale on Magic Eden. Users can search for specific NFTs or browse by collection.
  • Make an offer or buy an NFT. If the user finds an NFT to buy, they can make an offer or buy it at the listed price.
  • Finalize the transaction. The user must finalize the transaction once the user has made an offer or bought an NFT. This will require the user to pay a gas fee, a small amount of SOL used to process the transaction.
  • Receive your NFT. Once the transaction is finalized, the user will receive the NFT in their wallet. Users can view NFTs by visiting the wallet's "My Items" tab.

Unique Aspects

  • Low Transaction Fees. Magic Eden has very low transaction fees at 2%. This rate is lower than even the most competitive of its rivals, such as OpenSea, which charges 2.5%. This makes Magic Eden a popular choice among NFT traders, especially those looking to save money on fees.
  • Fast Transactions. Magic Eden uses the Solana blockchain, known for its fast transaction speeds. Transactions on Magic Eden typically take just a few seconds to complete. This makes it an excellent platform for buying and selling NFTs that need to be transferred quickly.
  • Community-Driven. Magic Eden is a community-driven marketplace. This means the platform is governed by its users, who have a say in running it. This gives users a sense of ownership over the platform and makes them more likely to stick around.
  • Support for multiple blockchains. Magic Eden supports NFTs on blockchains including Solana, Polygon, Ethereum and Bitcoin. 97% of the NFTs traded on Magic Eden are Solana-based. This makes Magic Eden a good place to buy and sell Solana-based NFTs.

Advantages

  • Ownership. Magic Eden allows users to truly own virtual assets This is because NFTs on the blockchain represent these assets. This gives users complete control over assets and the ability to transfer them to other users without intermediaries.
  • Decentralization. Magic Eden is a decentralized platform, meaning no single entity can control it. This makes it more resistant to censorship and ensures users have more control over data and assets.
  • Transparency. Magic Eden is built on the blockchain, as all transactions are transparent and can be viewed by anyone. This ensures that there is no fraud or manipulation on the platform. This is because all transactions on the blockchain are recorded in a public ledger and accessible to everyone. As a result, it is very difficult for anyone to cheat or steal from users on the platform.
  • Community. Magic Eden has a strong community of developers and users passionate about creating and trading virtual assets. This community helps to drive innovation on the platform and ensures that it continues to grow and evolve.
  • Low Fees. Magic Eden has low transaction fees compared to other blockchain-based platforms. This makes it more accessible to users who want to create and trade virtual assets without paying high fees.

Disadvantages

  • Complexity. Magic Eden is built on the blockchain, so it can be complex for new users to understand. Users need to understand blockchain technology and how it works to use the platform effectively. This can be a barrier to entry for some users.
  • Limited Information. Magic Eden is still in development.. This can make it difficult for users to know what the user can do with the platform. As the platform matures, more information will become available.
  • Security Risks. Security risks are associated with using the platform. Users must secure accounts and ensure digital assets are safe from theft or hacking. This includes using strong passwords and enabling two-factor authentication.
  • Limited Adoption. Thise is a newer platform with limited adoption compared to blockchain-based platforms such as CryptoKitties and Decentraland. This means users may need more opportunities to buy and sell virtual assets on the platform. As the platform gains more users, this will likely improve.
  • Competition from other marketplaces. Magic Eden faces competition from other NFT marketplaces like OpenSea and Solanart. These marketplaces offer a wider variety of NFTs, lower fees, and more features.