Magic Eden’s spell: Paying for Solana NFT trades
Prominent Solana NFT marketplace, Magic Eden, is changing its game plan, shifting its focus back to Solana and introducing some enticing new initiatives. Aptly dubbed “Chapter II”, these innovative changes aim to enhance user experience and promote active trading on the platform with a tantalizing perk – traders get free SOL for buying and selling NFTs.
In its quest to become a one-stop hub for traders, Magic Eden is starting to aggregate listings from other competing marketplaces. The objective is to offer traders a single, convenient destination where they can manage listings across platforms and get a comprehensive view of prices and listings throughout the entire Solana NFT market.
Open Source and Bonus on Trades: Breaking Barriers
In a significant move towards transparency and interplatform collaboration, Magic Eden – a startup valued at a whopping $1.6 billion as of June 2022 – has revealed its plans to open-source its marketplace smart contract.
Moreover, the company is doing away with the “co-sign” feature, a factor that has previously hampered its marketplace listings from being easily aggregated by other NFT marketplaces. This decision addresses long-standing critiques of Magic Eden and marks a shift in the company’s modus operandi, opening up opportunities for broader interaction between platforms.
There remains, however, a question mark over whether Magic Eden will continue to use an escrow contract that assumes custody of users’ listed NFTs. This aspect of their marketplace model has been a major point of contention, flagged by rivals as a potential security risk.
Payday for NFT Traders: The Maker Fee Twist
In a groundbreaking move, Magic Eden is temporarily revising its “maker fee” to -0.25% for specific transactions. Essentially, the marketplace will pay its users to buy and sell NFTs.
For example, if you list an NFT for 100 SOL, you would receive 100.25 SOL upon its sale. Similarly, if you make a collection offer on a particular Solana NFT project and it gets fulfilled, you’ll receive a 0.25% rebate on the purchase price. Traders can also earn fees for operating automated market maker (AMM) NFT trading pools on Magic Eden.
The Solana NFT Marketplace Showdown: Magic Eden vs. Tensor
This series of moves comes as Magic Eden faces stiff competition from rising rival Tensor, which has carved out a significant share of the Solana NFT market. Tensor employs a rewards model similar to Blur.
Recent market data from Tiexo indicate a close race between the two, with Magic Eden leading the past week with nearly 44% of trading volume compared to Tensor’s 40%. However, in the past day, Magic Eden has dominated 51% of the Solana NFT market, leaving Tensor with about 35%.
While Magic Eden has broadened its horizons to other chains like Ethereum, Polygon, and Bitcoin in recent months, the firm recently announced a renewed focus on Solana. As Magic Eden unveils this new chapter in its journey, it’s set to shake up the dynamics of the Solana NFT marketplace once again.