NFT market Magic Eden is planning to announce a $27 million fundraising spherical on Monday, involving Sequoia Capital and different buyers. 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, in keeping with 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-Based mostly NFT Market Magic Eden
Individuals think about shopping for or promoting NFTs most continuously from bigger marketplaces like OpenSea, which has 43% of the market share, with $23.3 billion in whole gross sales, in keeping with an evaluation of information from the analysis agency DappRadar.
Nevertheless, Shaun Maguire, a accomplice at Sequoia Capital, says OpenSea is much less environment friendly attributable to its reliance on the Ethereum blockchain. However, Magic Eden, a Solana blockchain-based NFT market, may 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 be capable of go into Solana,” he stated.
The buyers within the fundraising, aside from Sequoia Capital, may 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 growth. Over the previous month, buying and selling volumes on OpenSea have lowered in half. Nonetheless, NFT gross sales reached $2.9 billion in February, in keeping with NFT information supplier CryptoSlam, and buyers count on curiosity to carry up in the long run.
Magic Eden Continues Progress
Investor Marc Andreessen and Reddit Inc. co-founder Alexis Ohanian backed a $30 million fund final week solely devoted to purchasing NFT art work.
wow…we simply crossed $1B USD in whole 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, stated that blockchain has a robust group of creators and followers experimenting with NFTs, with essentially the most modern NFT tasks selecting Ethereum.
The Bloomberg report stated, 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 referred to as MagicDAO that anybody can be part of. Members can vote on issues like which NFT collections are featured on the homepage.
