Brief Overview
- Token economics and point conversion details have not yet been announced;
- Possible token release/stamp date - September 18 (platform launch date);
- Possible Binance Launchpool candidate;
- The project is being launched amid a downturn in the NFT market;
- Magic Eden maintains its leadership on Solana and Bitcoin.
About the project
Magic Eden - NFT marketplace. The largest on Solana and Bitcoin.
Raised a total of ~$160 million in three investment rounds, the last one was valued at $1.6 billion. Investors: Paradigm, Electric Capital, Sequoia, Lightspeed Ventures, Greylock partners. Binance is not represented among investors, but Magic Eden looks like a potential candidate for the launch pool.
Magic Eden's performance on the NFT market
Data for the last 30 days:
- Magic Eden received about 59% of its total revenue from trading;
- Collected almost $1 million in royalties (almost a third of the total royalty volume on the market);
- Attracted more than 116 thousand active users (mainly on Bitcoin and Solana), in second place is OpenSea with 112 thousand users (Ethereum, Base and Polygon);
- Significantly outpaced Tensor (the main competitor on Solana) in revenue on Solana, having collected 2 times more funds over the same period ($749 thousand versus $336.2 thousand);
- The absolute leader in the Bitcoin NFT market in terms of volume and revenue.
Token release dates
They announced that the claim will be available in Q3. There is a little over a month left until the end of the quarter.
But there is one important date - September 18, the platform launch date. They will probably want to tie them together.
In addition to the token, they are also releasing a wallet that will be needed for the claim.
Information about tokenomics and point conversion has not yet been announced.
Point program
Diamonds are awarded to the account for interacting with products and protocols.
- Diamonds are awarded for purchasing NFTs on Magic Eden:
- Additional diamonds for purchasing trending collections;
- Additional diamonds for large volumes;
- Awarded for both a single purchase and for purchasing through AMM;
- For using Lucky Buy, even if the NFT was not purchased.
- For Listing and selling NFTs on Magic Eden:
- The higher the probability of selling the NFT (the closer to the floor price), the more diamonds. For prices below the floor price, no additional diamonds are awarded;
- Additional diamonds for listing NFTs from trending collections;
- Awarded both for a single listing and for listing through AMM.
- For placing orders on Magic Eden:
- For orders for NFTs from the top 100 collections, based on daily volume;
- Additional diamonds for orders close to the floor price. For orders below the floor price, additional diamonds are not awarded;
- Additional diamonds for orders for trending collections.
- Bonuses:
- Loyalty bonus +100%
- Early participation bonus from September 2021 +100%
- Bonus for interaction with trending collections +50%
A certain number of diamonds are allocated for each day. The greater the overall activity, the fewer diamonds are awarded for one specific action.
From June 20 to July 20, it was possible to exchange NFT Magic Ticket for diamonds. After the official announcement, the prices dropped sharply, for example, Ticket Normie cost "before" 1.3 SOL ($175) and "after" 0.4 Sol ($50). 500 diamonds were awarded for a ticket. From this, we can calculate that the price of a diamond is ~$0.1.
The price of a diamond on Whales Market is $0.075.
On OTC they sell at $0.06 per diamond.
Comparison with competitors and evaluation
Magic Eden's obvious competitors are Tensor and Blur.
In the general decline of the NFT market, Blur is currently going through hard times. FDV ~$565 million.
Blur
It came out with an FDV valuation of >$3 billion and a token price of ~$1.2. It had a similar investment volume to Magic Eden at $159 million. During the bull run this spring, FDV grew to ~$2.2 billion.
Tensor, like Blur, has fallen significantly since its release. Now FDV is ~$400, x1.6 from ATL.
Tensor
Tensor was released with an FDV valuation of ~$2.1 billion in April.
If Magic Eden had been released a year ago, it would have easily been valued above $2.5 billion. But now the NFT market has sagged significantly. They cling to the narratives of the popular Solana and BTC, which can add weight to their valuation.
Result
Given the current state of the NFT market, even with all the benefits and updates of Magic Eden, the positive scenario for it is in the range of $1.5-2 billion, the real $500 million - $1 billion. The exact estimate will depend on factors such as tokenomics, market phase and future development plans of the project.
Possible participation in Binance Launchpool may also affect the growth of FDV, but expectations are still not the same as in 2022-23, when Blur was worth more than $3 billion.
