Magic Eden NFT Marketplace Tries to Entice Traffic with Rewards as Market Crumbles

As users collect more Magic Points, the platform will upgrade them to complete all loyalty tiers.

Written by Radhika Parashar, Edited by Richa Sharma | Updated: 15 December 2022 17:17 IST

Magic Eden NFT Marketplace Tries to Entice Traffic with Rewards as Market Crumbles

Photo Credit: Reuters

Magic Eden raised $130 million in a Series A funding round in June

Highlights

Eden was launched last year
Magic Eden is in competition with OpenSea, ApeCoin Marketplace
Magic Eden supports Solana and Ethereum NFTs

Magic Eden is trying to dial up the engagement on its platform at a time when the digital assets market as a whole is undergoing a downturn. The Solana-based NFT marketplace has announced a loyalty rewards initiative to entice the buyers of digital collectibles. The feature will fetch users five ‘Magic Points' for every trade worth SOL 1. As per today's market rate, Solana (SOL) is trading at $14 (roughly Rs. 1,170). As users collect more Magic Points, the platform will upgrade them to complete all loyalty tiers.

Each loyalty tier will unlock different set of benefits for people who use Magic Eden to buy and sell digital collectibles.

These rewards include exclusive content from creators, discounts from partners, and airdropped NFTs to them.

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For now, the rewards programme has been launched in its Beta phase, the company said in a Twitter post.

:thread:/ Magic Eden Buddies: Gotta Catch Em All!

• Sign in today for Magic Eden Rewards (Beta)!

• Start earning points for buying + selling NFTs

• Points get you future perks & benefits

Fee discounts starting 2023 (fees waived thru EOY) pic.twitter.com/sanlM7B7mh
— Magic Eden :magic_wand: (@MagicEden) December 14, 2022

Select users are already testing the programme.

1 Sol Challenge wallet setup and ready to rock on the new Magic Eden Rewards system.

Volume rewards will add an interesting dynamic to Solana NFT Trading going forward in terms of strategies etc.

Also been adding input on this system for over a month so hope everyone likes :ok_hand::purple_heart: pic.twitter.com/GnB2LP7fut
— Run:chart_with_upwards_trend: (@runn1ngm8n) December 14, 2022

“We want Magic Eden to be a place where collectors and creators connect beyond the transactional level and instead, a hub where users can more deeply engage with the community,” a Coindesk report quoted CEO Jack Lu as saying.

The platform, which raised $130 million (roughly Rs. 1,020 crore) in a Series A funding round in late June, touched a valuation of $1.6 billion (roughly Rs. 12,620 crore) in recent times.

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Earlier this year, the marketplace added support for NFTs built on the Ethereum blockchain.

Solana NFT volumes has been down since June, with sales volume figures of $91.52 million (roughly Rs. 730 crore) in June, down by 64 percent from $261.07 million (roughly Rs. 2,100 crore) in May 2022, an analysis by BeingCrypto had highlighted in previous months.

On OpenSea NFT marketplace as well, which is Magic Eden's more established rival, sales volumes plunged.

According to crypto analytics community Dune data, OpenSea's trading volume saw a steady declined throughout the first two quarters of the year, sliding to $3.1 billion (roughly Rs. 24,800 crore) in May.

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Further reading: Cryptocurrency, Magic Eden, NFT, Rewards

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More