Magic Eden raises $130M, hitting unicorn standing at $1.6B valuation – TechCrunch

NFT market Magic Eden, launched simply 9 months in the past, has raised $130 million in a Sequence B spherical co-led by Electrical Capital and Greylock Companions, bringing its valuation to $1.6 billion.

Lightspeed Enterprise Companions additionally participated alongside earlier traders Paradigm and Sequoia Capital. The spherical comes simply three months after it closed a $27 million Sequence A in March.

“[This valuation] greater than ever validates the business and market we’re in,” Zhuoxun Yin, COO of Magic Eden, stated to TechCrunch. “There’s investor urge for food to wager on this market. We’re very bullish on the horizon, there’s rather a lot to construct and a lot of the use instances are nonetheless early, so this provides us a possibility to construct that.”

Its main NFT market, Launchpad, has over 250 initiatives, whereas its secondary market has over 7,000 collections and is liable for 92% of all Solana-based NFT quantity. Usually, Magic Eden’s platform has a median of 20 million distinctive periods per 30 days and mints over 50,000 Solana-based NFTs each day.

“Once we began, we weren’t the primary movers on Solana. We needed to play catch-up,” Yin stated. “So this didn’t fall in our laps; we constructed on the neighborhood’s needs and did what they wished to do and I believe it served us effectively and is one thing we’ll proceed to deal with.”

The funds shall be used to develop its main and secondary marketplaces, look into multi-chain alternatives past the Solana blockchain, and enhance its merchandise, amongst different issues.

“At our coronary heart, we’re user-first and wish to go the place they’re and higher serve them,” Jack Lu, CEO of Magic Eden, stated to TechCrunch. “I believe when you consider totally different use instances in crypto total, proper now it’s clear NFTs are a bridge from the typical client to the blockchain world. It’s cultural, it’s about communities on the web and is far more emotionally relatable.”

This previous yr, there was exponential development within the NFT sector because the digital asset subsector took off in reputation each within the crypto world and amongst mainstream audiences. However the hype stagnated a bit after NFT consumers and sellers peaked in January and have since fallen from all-time highs, Dune Analytics information exhibits.

With that stated, over the previous three months, the month-to-month lively customers and transaction quantity throughout all aggregated Solana NFT transactions have elevated consecutively, based on Dune Analytics information from chuxin.

As of June 1, Magic Eden makes up for nearly 97% of the market share for each day Solana NFT transactions, up nearly 10 share factors from 88.5% on the month-ago date, chuxin’s information exhibits.

“It has been a quick and wild trip,” Lu stated. “There was an enormous quantity of [NFT] development within the final cycle, however that is nothing in comparison with the headroom and development potential sooner or later.”

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