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    What is Magic Eden? All Things to Know About Solana’s Leading NFT Marketplace

    Since its launch in 2021, Magic Eden has undergone rapid growth, raising $130 million in Series B funding in July 2022 with a valuation of $1.6 billion. It is currently the largest NFT marketplace in the Solana ecosystem.

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    What is Magic Eden?

    Magic Eden is the dominant player in the Solana NFT ecosystem, accounting for over 90% of the total secondary trading market share. The marketplace allows users to easily mint and buy NFTs with low transaction costs, high liquidity, and a user-friendly interface. 

    What does Magic Eden have? 

    • Core Secondary Marketplace: Users can trade NFTs quickly, have an easy and efficient research and trading experience with over 4000 NFT collections, support for 5 languages with an intuitive user interface, and low transaction fees (0% listing fee, 2% transaction fee).
    • Launchpad: This is an exclusive product of Magic Eden. Only 5% of launchpads are accepted by Magic Eden, which are the best projects on Solana. Magic Eden is also a launchpad to support NFT creators by helping users mint new NFTs, promote and distribute NFTs automatically.
    • Whitelabel marketplaces: Magic Eden has partnerships with many projects such as Raydium, Thugbirdz, Galactic, etc. By listing NFTs on Magic Eden, users’ products are also sold on other NFT exchanges, providing high liquidity for users’ NFTs.
    • Gaming: supports game creators and their communities on Solana. Magic Eden partnered with top game projects on Solana to launch Eden Games, a game platform tied to the Magic Eden ecosystem that showcases Solana’s best games and hosts tournaments.
    • Music: allows users to donate to their favorite artists while receiving a share of royalties and proof of ownership.

    Magic Eden recently airdropped over 30,000 NFT Magic Tickets to grow MagicDAO, a community of Magic Eden members used for social association, rewards, and governance. Magic Ticket is currently being sold with a floor price of 0.28 SOL.

    Development team

    The development team includes all experienced experts in IT, Crypto, Blockchain, and product development. The marketplace has scaled up from 4 co-founders to over 60 employees in just 6 months.

    • Co-Founder & CTO – Sidney: Started a crypto company in 2013. Joined Uber in 2015 and helped Uber Eats reach a booking rate of $6 billion in just 4 years before working at Facebook AI team.
    • CEO – Jack Lu: Consultant for Boston, Product Manager for Google, and Developer at FTX.
    • COO – Zhuoxun Yin Zhuoxun: Head of Strategy & Business Operations at dYdX and Senior Product Manager at Coinbase.
    • Chief Engineer – Zhuojie Zhou Rex: Former Engineer at Uber, Checkr, and Facebook AI team. He is also the creator of Flagr, OpenMock, Open Privacy Vault, and DSRHub.

    How to use Magic Eden

    To use Magic Eden, you will need a Solana-compatible wallet like Trust Wallet or Exodus Wallet, containing some SOL – enough to pay for your NFT and transaction fees on the Solana blockchain. Choose “connect wallet” at the top right of the website (without creating an account), then click on a collection and bid on a project. As an interface to Solana NFT, all Solana NFT projects are hosted on the platform.

    Magic Eden also has an iOS app. However, the app is browser-only – you will have to visit the site on a web browser and connect your web3 wallet to trade NFTs.

    Magic Eden vs. OpenSea

    Magic Eden captures 97% to 99% of the daily volume for Solana NFTs, according to a dashboard on Dune Analytics from SeaLaunch that derives trading data from the two platforms’ trading fees.

    Still, OpenSea remains the larger platform in terms of daily sales across all blockchains. While Magic Eden averages around 55,000 SOL a day or $2.1 million as of this writing, OpenSea records trade of about $15 million in Ethereum every 24 hours.

    Here is the comparison between 2 marketplaces: 

    1. User onboarding process

    The process for buying and selling NFTs on both Magic Eden and OpenSea is simple. Users need to connect their crypto wallet to be able to trade NFTs and view their existing portfolio. Both marketplaces offer a simple UI to link your portfolio with just a few clicks.

    However, in terms of Solana wallet support, Magic Eden has more advantages than OpenSea. 

    2. Wallet support

    Magic Eden supports a wide range of Solana wallets, including Phantom Wallet, Solflare, Slope, and others, as well as multi-chain wallets like Clover, MathWallet, and Ledger. Magic Eden has yet to reveal the wallets supported for Ethereum-based NFTs.

    OpenSea also supports a wide range of crypto wallets for Ethereum-based NFTs, such as MetaMask, Coinbase Wallet, WalletConnect, and others, as well as card support from Moonpay. However, the NFT market presently supports only a few Solana wallets, such as Phantom and Glow.

    3. Listing

    Once you have your wallet connected, listing NFTs on Magic Eden and OpenSea is not a hassle. Apart from the transaction fees, Magic Eden and OpenSea do not charge any additional fees for listing NFTs on their marketplaces. Both platforms allow NFT creators and artists to define their royalty fee percentage on secondary sales of their NFTs.

    4. Purchase

    Magic Eden has more simple UI for purchasing NFTs than OpenSea. However, OpenSea still has more payment options, including card payments through Moonpay, while Magic Eden is completely web3 and only supports crypto wallets.

    5. Security

    Both OpenSea and Magic Eden offer a secure and robust platform with additional safety features to protect their users. However, there are still security vulnerabilities where hackers scam users into giving their wallet keys.

    6. Auction support

    The auction system allows NFT projects and creators to invite bidders who decide the worth of an NFT through bidding.  With this feature, NFT creators can create virtual bidding competitions for their NFTs.

    Both Magic Eden and OpenSea have this feature. 

    7. Transaction fees

    OpenSea charges a service fee of 2.5% for both Ethereum and Solana-based NFTs along with the network transaction fee or gas fee, which varies for Ethereum depending on network traffic and is around 0.000005 SOL for Solana.

    Magic Eden hasn’t announced the service charge and transaction fees for Ethereum-based NFTs, it charges a 2% service charge along with gas fees for Solana NFTs.

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