Solana-based NFT marketplace, Magic Eden, raises $130M at $1.6B valuation

Magic Eden, a Solana-based blockchain marketplace, raised $130 million in a Series B funding round. In March of this year, Magic Eden raised $27 million in their Series A funding round which was utilized to develop ranging products and services. 

Magic Eden announced its Series B round barely three months after a $27 million Series A investment headed by Paradigm. The business did not disclose its valuation at the time, but Dealroom thinks it was worth up to $162 million. That implies Magic Eden’s value has increased roughly ninefold in only three months. 

The $1.6 billion financing was revealed on Tuesday, placing it on par with the Series B round of OpenSea, the biggest Ethereum NFT marketplace, which went on to earn a $13 billion valuation in a Series C round announced earlier this year.

According to a news statement, Magic Eden intends to utilize the cash to grow its core and secondary marketplaces, as well as to investigate “multichain potential.”

“We know that NFTs  are the best way to bring people onto the blockchain,” Jack Lu, CEO of Magic Eden, said in a statement. “NFTs are exciting, social and cultural experiences that bring connectivity to the world. We’ve made the conscious decision to support both our creators and users through this tremendous era of growth for both the company and the industry.”

Magic Eden is the current monarch of the Solana  NFT community, managing over 90% of the ecosystem’s traffic and gaining traction in recent months.

In terms of daily transactions and volume, the marketplace is currently competing with, and occasionally surpassing, OpenSea.

The Magic Eden fundraising comes amid an otherwise dismal crypto atmosphere, with prices for NFT ecosystem underpinning currencies such as SOL and ETH down as much as 80% from all-time highs in the last year.

In March, Magic Eden secured a $27 million Series A round headed by Paradigm, Sequoia, and Solana Ventures.

Given the current status of the crypto market, institutional investor raises are beginning to slow. Lu, for one, is unconcerned.

“Markets will do what markets do – we are excited to build on a 10+ year time horizon,” he said via email, adding:

“We see this capital as a measure of our investor confidence in Magic Eden and the broader crypto market. The additional investment will allow us to achieve our goal to onboard the next billion users to Web3 without being constrained by market cycles.”

Expansions Plan

With additional capital, Magic Eden intends to develop its main peer-to-peer NFT marketplace as well as a primary marketplace dubbed Launchpad, which supports creators and assists them in launching their own NFT collections.

Magic Eden, according to Lu, seeks to support creators and end-users throughout their NFT experience, from buying to community interaction.

Magic Eden, which currently only supports Solana, plans to grow to other blockchains. In the interview, Zhuoxun Yin, the firm’s other co-founder and COO, declined to name the blockchains but stated, “we are examining all of the ones that you would anticipate.”

More specifics about the multi-chain expansion plan would be released “in the coming weeks,” he said.

Magic Eden presently employs roughly 100 people, with plans to hire another 50 in the next six to twelve months, according to Lu. He is hiring in a variety of departments, including engineering and product management.

Magic According to Lu, Eden is also “conceptually open” to the possibility of creating its own token. “However, we don’t currently have concrete plans to communicate on that front,” he continued.