The NFT Magic Eden marketplace, launched just nine months ago, raised $130 million in a Series B round co-led by Electric Capital and Greylock Partners, taking its valuation to $1.6 billion.
Lightspeed Venture Partners also participated alongside previous investors Paradigm and Sequoia Capital. The round comes just three months after closing a $27 million Series A in March.
“[This valuation] more than ever it validates the industry and market we are in,” Zhuoxun Yin, COO of Magic Eden, told TechCrunch. “There is an appetite from investors to bet on this market. We are very optimistic on the horizon, there is a lot to build on and most of the use cases are still in their infancy, so this gives us the opportunity to build on that.”
Its main NFT marketplace, Launchpad, has over 250 projects, while its secondary market has over 7,000 collections and accounts for 92% of all Solana-based NFT volume. Overall, the Magic Eden platform averages 20 million unique sessions per month and produces over 50,000 Solana-based NFTs daily.
“When we started, we weren’t the pioneers in Solana. We had to catch up,” Yin said. “So it didn’t fall into our laps; We built on the desires of the community and did what they wanted to do and I think that served us well and is something we will continue to focus on.”
The funds will be used to expand its primary and secondary markets, analyze opportunities from multiple chains beyond the Solana blockchain, and improve its products, among other things.
“At our heart, we put the user first and want to go where they are and serve them best,” Jack Lu, CEO of Magic Eden, told TechCrunch. “I think when you think about different use cases in cryptocurrencies in general, it is now clear that NFTs are a bridge from the average consumer to the blockchain world. It’s cultural, it’s about communities on the internet, and it’s much more emotionally relatable.”
The past year has seen exponential growth in the NFT sector as the digital assets sub-sector has taken off in popularity both in the cryptocurrency world and among the mainstream audience. But the hype stagnated somewhat after NFT buyers and sellers peaked in January and have since fallen from record highs, data from Dune Analytics shows.
With that said, over the past three months, monthly active users and transaction volume across all aggregated Solana NFT transactions have increased consecutively, according to data from chuxin’s Dune Analytics.
As of June 1, Magic Eden accounts for nearly 97% of the market share for daily Solana NFT transactions, up nearly 10 percentage points from the previous month’s 88.5%, chuxin data shows.
“It was a quick and wild ride,” Lu said. “There were a lot of [NFT] growth in the last cycle, but that’s nothing compared to the headroom and growth potential in the future.”