Magic Eden Pivots: Exits Bitcoin and Ethereum NFT Markets to Focus on Solana and iGaming

NFT marketplace Magic Eden is significantly altering its strategy, announcing it will cease support for Bitcoin and Ethereum-based assets, including those on scaling networks like Polygon and Base, as well as Bitcoin Ordinals and Runes. This move marks a departure from its previously adopted multi-chain approach, signaling a renewed commitment to the Solana ecosystem where it first launched.

Key Takeaways

• Magic Eden is ending support for Ethereum and Bitcoin-based NFTs and tokens.

• The company is doubling down on its Solana ecosystem support.

• A strategic pivot towards an iGaming platform, Dicey, is underway.

• The self-custodial wallet will also see changes, removing support for these assets.

Strategic Shift to Solana and iGaming

Magic Eden co-founder and CEO Jack Lu announced the upcoming changes, stating that users will no longer be able to trade assets associated with Ethereum and Bitcoin networks on the platform within two weeks. The company's self-custodial wallet will follow suit at the beginning of April. This decision represents a significant shift from Magic Eden's earlier strategy, which saw it become a leading NFT marketplace by embracing a multi-chain presence and pioneering support for Bitcoin Ordinals.

Lu indicated that the company is now orienting itself around the "massive opportunity in iGaming." This focus is exemplified by Dicey, a crypto casino and sportsbook unveiled in January, which is currently in closed beta and has reportedly seen substantial wagers. Magic Eden's acquisition of Slingshot Finance last year also hinted at a move beyond digital collectibles into broader crypto trading applications.

Impact on ME Token and Future Outlook

As part of this strategic pivot, Magic Eden will discontinue its NFT buyback program. The company also plans to refine the utility of its ME token across its product suite. The ME token, which allows users to earn rewards and participate in governance, has seen a significant decline in value, trading around 12 cents and down 97% from its peak in December 2024.

Despite the cooling NFT market, Magic Eden generated $576 million in trading volume last month, with the majority centered on Solana NFTs. However, Bitcoin-based assets contributed $121,000 in volume during the same period. While Magic Eden exits these markets, other projects are emerging to support Bitcoin-based assets, with a dedicated marketplace for Ordinals reportedly "coming soon."

Magic Eden has raised $140 million in total funding, including a $130 million Series B round in 2022 that valued the company at $1.6 billion. The company was an early adopter of Bitcoin Ordinals and Runes, establishing a strong position in that market before its eventual cooling.

Sources

• Magic Eden Pulls Plug on Bitcoin and Ethereum Support, Doubles Down on Solana, Decrypt.

• Magic Eden Pulls Plug on Bitcoin and Ethereum Support, Doubles Down on Solana, Yahoo Finance.