Magic Eden debuted its Chapter II initiative earlier today. By issuing traders free SOL for Solana NFT transactions, the multi-chain NFT marketplace‘s new strategy aims to expand the platform and increase transaction volume.Â
Quick Takes:Â
- Magic Eden Chapter II focuses on the Solana network, offering complimentary SOL tokens to traders.
- Addressing previous criticisms, the NFT marketplace is open-sourcing its smart contract and removing a feature that hindered the aggregation of its listings by other NFT marketplaces.
- The NFT marketplace is also implementing a -0.25% “maker fee” that pays users for participating in NFT trading, providing additional incentives for users.
Magic Eden’s Chapter II
Initially establishing on Solana, Magic Eden is bringing its focus back to the blockchain network, launching a one-stop shop that manages and compares listings from Solana NFT marketplaces.
The firm, evaluated at $1.6 billion in June last year, is set to open-source its smart marketplace contract. To amplify interoperability and address past criticisms, Magic Eden will remove its feature that has previously made it tricky for other NFT marketplaces to aggregate its listings. This change of heart comes amid uncertainty regarding the future use of an escrow contract that stores users’ listed NFTs, which some perceive as a security risk.
Magic Eden is switching its “maker fee” to -0.25% for specific transactions, paying back NFT traders to enhance its initiative. For instance, if a user lists a Solana NFT for 100 SOL, they will be granted 100.25 SOL when it sells.
NFT Marketplace Rivalry
An escalating challenge from the growing competitor Tensor drives Magic Eden’s tactical new strategy. According to Tiexo data, however, Magic Eden has a competitive advantage by accounting for around 44% of the total trading volume this week, with an even more significant market share of 51% over the past 24 hours — suggesting that Magic Eden remains as being a dominant player in the Solana NFT market, regardless of Tensor’s rising presence.
Tensor recently criticized Magic Eden, heating competition between the two marketplaces. However, instead of verbally fighting back, Magic Eden enhanced its platform services, notably centralizing its primary operations on Solana rather than spreading resources across chains.
This new initiative presents Magic Eden’s commitment to its original home. Moreover, this aggregation proves the NFT marketplace’s ability to respond and adapt to rivals’ pressures to stay ahead of the realm.
Subscribe to the NFT Lately newsletter to receive news covering the latest NFT-related drops, releases, reviews, and more.
