OpenSea may be the market leader in Ethereum NFT marketplaces, but there’s another ecosystem gaining traction on the Solana blockchain, and Magic Eden has a similar dominating lead. Magic Eden announced on Monday that it had gathered $27 million to further its goals.
Paradigm, an investment firm that supports crypto/Web3 organisations and technologies, led the Series A round of funding. Both based in California, Sequoia Ventures and Solana Ventures were also part of the investment. While Sequoia Ventures was named India’s most active venture capital fund in 2019, Solana Ventures is well-known for supporting the Solana Blockchain and comparable ecosystems.
Users will flock to a platform with cheaper fees, and a lower average NFT sale price as Magic Eden and its investors bet its customer base will grow. Magic Eden has already surpassed OpenSea in terms of monthly transactions, reaching 4.64 million vs 2.28 million in the prior 30 days.
The company features an impressive NFT marketplace on the Solana blockchain, with over 7.5 million SOL in transaction volume in the previous six months. It also has a market share of over 90% of the secondary-trading volume for NFT games. Magic Eden plans to use the funds to expand its gaming division and introduce an NFT mobile application that allows users to browse, mint, and trade NFTs while on the go.
Because of its high traffic and gas prices, Ethereum‘s stronghold over the Non-Fungible Token (NFT) marketplace is fading with each successive day. Since August of last year, the Solana Blockchain has indeed taken the most significant portion of NFT volume away from Ethereum. The Solana NFT marketplace, according to JPMorgan’s study, virtually launched the massive frenzy for NFTs.