NFT market Magic Eden is planning to announce a $27 million fundraising spherical on Monday, involving Sequoia Capital and different traders. Magic Eden makes use of the Solana blockchain to authenticate NFTs on its market. Solana, additionally known as “Ethereum killer,” is able to facilitating extra transactions per second than Ethereum and at a less expensive price, based on analysis by Etherscan.
Sequoia Capital sees a weak spot in Opensea’s NFT dominance, because it depends on the much less environment friendly Ethereum blockchain. Therefore, the corporate chooses to spend money on the smaller participant constructed round what it sees as a greater blockchain for NFTs.
Sequoia Capital To Make investments In Solana-Primarily based NFT Market Magic Eden
Individuals take into account shopping for or promoting NFTs most regularly from bigger marketplaces like OpenSea, which has 43% of the market share, with $23.3 billion in complete gross sales, based on an evaluation of knowledge from the analysis agency DappRadar.
Nonetheless, Shaun Maguire, a accomplice at Sequoia Capital, says OpenSea is much less environment friendly as a result of its reliance on the Ethereum blockchain. Then again, Magic Eden, a Solana blockchain-based NFT market, might beat OpenSea by being the primary to introduce Solana NFTs.
“The wager was that they might transfer quick and that they might seize that benefit earlier than OpenSea would have the ability to go into Solana,” he mentioned.
The traders within the fundraising, apart from Sequoia Capital, might embrace crypto enterprise capital agency Paradigm, Greylock, Solana Ventures.
Zhuoxun Yin, a former Coinbase product supervisor, co-founded Magic Eden final 12 months through the NFT increase. Over the previous month, buying and selling volumes on OpenSea have diminished in half. Nonetheless, NFT gross sales reached $2.9 billion in February, based on NFT information supplier CryptoSlam, and traders count on curiosity to carry up in the long run.
Magic Eden Continues Development
Investor Marc Andreessen and Reddit Inc. co-founder Alexis Ohanian backed a $30 million fund final week solely devoted to purchasing NFT paintings.
wow…we simply crossed $1B USD in complete secondary commerce quantity. speechless. thanks. pic.twitter.com/g7hGorg9wd
— Magic Eden 🪄 Solana’s Main NFT Market (@MagicEden) March 12, 2022
Tim Beiko, a core contributor to Ethereum, mentioned that blockchain has a powerful group of creators and followers experimenting with NFTs, with essentially the most modern NFT tasks selecting Ethereum.
The Bloomberg report mentioned, Magic Eden has 55 workers dispersed around the globe and can open its first workplace subsequent month in San Francisco. It additionally created a decentralized autonomous group known as MagicDAO that anybody can be a part of. Members can vote on issues like which NFT collections are featured on the homepage.
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