What is Magic Eden NFT Marketplace? | Definition + Examples
Magic Eden is an NFT platform for Solana blockchain that allows users to buy, sell, and promote NFTs. Since the launch of a major NFT collection Okay Bears, it’s quickly become one of the best NFT marketplaces.
The emergence of NFTs has brought new possibilities for creators to sell their art. However, the exorbitant prices on Ethereum and the technical expertise required have demonstrated to be a hurdle for the many. What is more, OpenSea has experienced backlash over extortionate NFT prices and gas fees.
Magic Eden tries to tackle the issue by simplifying the minting process and decreasing high transaction fees, making NFTs more affordable and accessible. Since Magic Eden runs on the Solana blockchain, gas fees are lower.
Magic Eden NFT marketplace is growing
Magic Eden NFT marketplace. Source: https://magiceden.io/collections, 2022
Magic Eden NFT marketplace went live on the 17th of September 2021. While a lot of Magic Eden’s competition is on the Ethereum blockchain, you’ll need SOL tokens and be on the Solana blockchain to mint NFTs on the Magic Eden marketplace.
Besides the largest Okay Bears on Solana, other popular projects on Magic Eden include Duppies NFT, Blocksmith Lab NFT, and Famous Fox Federation NFT collections.
Looking at the transaction volume, Magic Eden has already exceeded their Ethereum counterpart OpenSea, processing around 275,000 daily transactions vs. 50,000 on OpenSea.
However, the sales volume still has a way to go. OpenSea saw $35 million traded compared to $10 million on Magic Eden, as the average price of $700 per NFT on OpenSea is well above Magic Eden’s average NFT price of $123, according to data from DappRadar.
What are NFT marketplaces?
For those who want in on the NFT craze, NFT Marketplaces enable users to acquire, sell and trade various digital assets in the form of NFTs – from digital artwork to virtual objects to virtual land and real estate in the metaverse and immersive blockchain games.
The emergence of different NFT marketplaces has turned out to be an essential part of the increase in popularity and wider adoption of the NFT ecosystem. Some of the most popular and largest NFT marketplaces are OpenSea, Raible, Larva Labs, and one of the latest additions: Magic Eden.
Magic Eden NFT marketplace minting process
Magic Eden NFT marketplace allows users to buy, sell, promote or mint NFTs on the Solana network. Since the “Balloonsville” NFT scam, when project creators vanished with over 5,000 SOL of investors’ funds, the platform has implemented more strict minting processes.
All sellers are fully doxxed via Magic Eden launchpad to prevent rug pulls. Therefore, the first step for sellers is to apply on the launchpad, and after confirmation, they can start selling and promoting their NFT project.
What makes Magic Eden more convenient for both sellers and buyers is lower gas fees since all NFT collections are on the Solana network – one of the major advantages. What is more, ME offers customizable features, well-organised filtering and dashboard, and a community to promote your NFTs. New NFT collections are added every day, and strict authentication processes help avoid rug pulls.
Benefits of Magic Eden NFT marketplace to users
Magic Eden is built on the Solana blockchain and wants to improve the personal experience for both creators and consumers. Listing, buying, and converting the price of NFTs on Solana charges a fraction of what it does on Ethereum, which means that it’s no longer necessary to weigh up the price of each transaction.
Lower transaction fees
By setting the transaction price at 2% and listing price at 0%, Magic Eden reduced the barrier of entry for new and experienced creators and buyers of NFTs.
Solana’s lower gas fees – generally priced only a fraction – make the transactions on Magic Eden more affordable than its competitors. Gas fees on Ethereum on OpenSea, for example, can sit around hundreds of US dollars, and in some cases, gas fees are more than the price of the NFT itself.
Faster transaction speed
Moreover, Magic Eden’s transaction speed is lightning fast – while Solana can take care of 65,000 transactions in line with second, marketplaces on Ethereum can only process 30 transactions according to second.
Because Solana uses a Proof of History (PoH) consensus mechanism, which builds on the Proof of Stake model, transacting on Magic Eden is a good deal and more environmentally friendly than marketplaces on Ethereum. The strength intake for a single transaction on Solana is more or less 0.166 watt-hours, in Ethereum consumes about 238.22 kWh.
Mint directly on the platform
Customers can mint NFTs directly on Magic Eden’s Launchpad. While users don’t know which NFT they’ll mint because it typically operates like a fortunate draw, they have a shot of getting either a rare NFT or a more common NFT, however, for the same price.
Automated authentication process
Lastly, Magic Eden NFT directly automates the authentication process of NFTs. Each time an NFT sells and passes hands, the creator benefits from preset royalties embedded into its smart contract code. All of this is beneficial to creators who have historically struggled to find an efficient way to sell their art, eliminating third parties.
Magic Eden NFT marketplace and blockchain-gaming
Along with its strong community of NFT consumers and creators, Magic Eden has grown as an aggressive market for crypto and metaverse video gaming. With the launch of its new gaming platform, Eden Games, Magic Eden is said to have already got about 92% of Solana’s gaming marketplace.
The NFT marketplace has said they’ll set aside a percentage of its Series A funding to further develop its gaming experience, Magic Eden gaming. Popular blockchain games launched on Eden Games consist of the warfare royale shooter Mini Royale, PVP tank brawler Panzer Dogs, and the Remnants, and there will be more games dropping.
What is more, Magic Eden plans to include more digital items in the games – in particular, constructing greater guns, skins, tournaments, etc., as a way of retaining players.
Magic Eden has got its sights set on growth
In the future, Magic Eden NFT has its sights set on enhancing the users’ enjoyment of their mobile app for both IOS and Android. It will use another percentage of its investment for the development of its app for surfing, minting, and trading NFTs. The founders hope to create a mass consumer moment on a mobile app in crypto and overtake their competition.