This report is written by Tiger Research. In the eyes of many, Magic Eden is the leading NFT marketplace on Solana. However, it has transcended the scope of a marketplace and transformed into a crypto entertainment platform. Let’s delve into the journey and changes that have facilitated this transformation.
Key Points Summary
- Magic Eden has transformed from a simple NFT marketplace into a "crypto entertainment platform" by integrating gaming elements.
- Features like "Lucky Buy" and "Packs" focus on user experience and have successfully reshaped the platform's brand image.
- The platform uses 30% of its revenue to buy back ME tokens and NFTs, thereby establishing a strong connection with holders.
1. Magic Eden: More Than Just NFTs
Magic Eden was established in 2021 and quickly disrupted the "NFT marketplace battle." With low fees and creator-friendly tools, Magic Eden rapidly rose to become a key player on the Solana platform, facilitating between $15 billion to $20 billion in NFT transactions over the past four years.
However, this strong first impression has led to an undervaluation of the project.
This is because many investors still view Magic Eden merely as "the best NFT trading platform on Solana." Consequently, concerns about the overall NFT market have also led to worries about Magic Eden itself.
However, Magic Eden has long surpassed the category of a simple NFT trading platform. It has established diversified revenue streams.
Co-founder Jack stated on X that as of 2024, token trading revenue accounts for over 30% of total revenue. This marks a significant shift from the company's previous model, which relied entirely on NFT trading fees. As Magic Eden adds gaming features in 2025 and evolves into an entertainment platform, this transformation will continue.
The "Packs" feature is a prime example. It is a probability-based mechanism similar to the existing "Lucky Buy" tool. Data proves its success. According to a podcast episode from Presto Research, the "Pack" feature generated approximately $15 million in revenue during its first week of launch.
Magic Eden is no longer just an NFT trading platform; it is now a "crypto entertainment platform" focused on user enjoyment.
2. Magic Eden = Crypto Entertainment
Since its inception, Magic Eden has adhered to a bold and fun concept. Its core target users have always been "ordinary cryptocurrency users," rather than professional traders. The mass market seeks an intuitive and easy-to-use entertainment experience, rather than complex trading tools.
Most exchanges and token trading tools compete in the "PvP" market, promoting low fees and professional-grade tools. This is a crowded "red ocean" with low expected returns. Most participants in the cryptocurrency industry focus on this area, chasing professional trading trends.
In contrast, Magic Eden focuses on "fun." While other companies chase big clients, Magic Eden has taken an "opposite approach" to capture the vast consumer market.
2.1. Lucky Buy Feature
The best case for this strategy is "Lucky Buy." This product was launched in September 2023. Users can try to win high-value NFTs with a small investment through a roulette mechanism, without paying the full price.
Users can set their winning probability from 1% to 75% based on the amount they pay. However, this also determines their chances of winning. The product provides an opportunity for users with limited funds while also offering sellers additional liquidity.
Gamifying the purchasing process has sparked a huge response. Although this service is restricted in the U.S. due to regulatory reasons, "Lucky Buy" has become Magic Eden's fastest-growing product line purely based on organic demand.
2.2. Packs Feature
"Packs" was launched in late October 2025, continuing this strategy. It brings the thrill of opening physical card packs into the digital realm. Users can "open" digital card packs obtained through app activities, searching for rare digital collectibles: from NFTs in top Solana and Ethereum collections to tokenized, graded Pokémon cards.
In its first week of release, the "Packs" feature generated approximately $15 million in revenue—more than the total of the entire NFT industry, highlighting strong user demand.
Magic Eden is now doubling down on this product: adding multi-pack opening features, expanding digital collectible categories, and introducing more novel gaming mechanics such as pack battles, gifting, and richer gaming effects.
This is a powerful user retention strategy. While users on other platforms analyze complex charts, Magic Eden's users are enjoying the fun of unpacking card packs. This is the essence of cryptocurrency entertainment.
3. Inevitable Regulatory Constraints and Positive Breakthroughs
The entertainment and speculation-based strategy faces strict regulation. Under the leadership of the U.S. Securities and Exchange Commission and the Biden administration, the U.S. has taken a hard stance on cryptocurrency.
In this environment, most companies would choose to retreat or cut back on features. But Magic Eden has not backed down. It employs advanced "geo-blocking" technology to technically restrict access for U.S. users and leverages its large global user base for growth. Meanwhile, Magic Eden consistently adheres to the highest operational standards, complying with all relevant regulations.
Magic Eden prioritizes offering experimental products without permission to users outside the U.S. (such as in South Korea).
While other companies falter in the face of regulation, Magic Eden boldly challenges it, striving to meet public demand. This model views regulation as an "operational tool" to enhance global market share, rather than a passive constraint.
4. Buybacks: What the Public Really Wants
If high company revenues do not elevate the token prices in investors' wallets, it means little to investors. Many cryptocurrency projects fail to link platform revenue with token value.
On November 13, 2025, Magic Eden announced a "buyback plan" to address this issue. The concept of the plan is simple: the company will reinvest profits to support ecosystem value. Magic Eden promises to return 30% of NFT marketplace revenue through the following structure:
ME Token Buyback (15% of revenue): The company directly buys back ME tokens from the market. This is similar to stock buybacks. Reducing the circulating supply will exert upward pressure on token value.
NFT Collection Buyback (15% of revenue): The remaining 15% is used to buy back significant NFT collections. These assets are permanently stored in an on-chain vault called "Eden." By directly maintaining the floor price, the company enhances the stability of the ecosystem.
The project will first launch on Solana and then expand to more platforms like Bitcoin, Ethereum, and Monad. Magic Eden's token economic model goes beyond a simple governance model. The company's success directly drives token purchases and NFT price increases. This systematically interprets the idea that "project success equals community success," truly meeting public demand.
5. Completion of Mass Market Crypto Entertainment
Magic Eden is no longer just an NFT trading platform; it is now a mass-market crypto entertainment platform designed to bring joy to the public.
Magic Eden first built a solid financial foundation. Its wallet and exchange tools can connect assets across decentralized blockchains. Subsequently, it added features like "Lucky Buy" and "Packs" to attract a large user base. To maintain this momentum, the company launched a buyback plan utilizing 30% of its revenue, providing users with clear economic returns.
Magic Eden's advantage lies in speed and market insight. While competitors stagnate due to rules or complex technologies, Magic Eden can provide the interaction and "dopamine" that users crave. It boldly employs geo-blocking technology, acting swiftly while other companies hesitate.
However, there remains a significant gap in the crypto entertainment space. High-value areas like prediction markets hold billions of dollars in growth potential, which has yet to be fully tapped. Magic Eden is committed to leading this transformation and unlocking its value. To this end, the company is incubating some independent businesses, such as the iGaming platform Dicey. These new ventures will drive the next phase of growth.
The final step is to integrate these tools into a mobile wallet. When finance and entertainment perfectly merge in one application, Magic Eden will become the main gateway to the Web3 world.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
