#What is the Impact of Magic Eden's Strategic Shift?
Magic Eden recently announced the discontinuation of its Bitcoin and Ethereum Virtual Machine marketplaces along with the closure of its multi-chain wallet. This decision represents a significant strategic pivot away from the company's earlier focus on Ordinals, which was once a leading segment for the firm.
As reported, operations for the EVM marketplace and the Bitcoin Runes and Ordinals marketplace will cease on March 9, followed by the closure of the Bitcoin API on March 27. In addition, the Magic Eden wallet will transition to export-only mode before being completely shut down on April 1. Notably, the company will still support Solana assets going forward.
This pivot is particularly striking for a platform that emerged as a leader in the Bitcoin Ordinals marketplace. After its launch in March 2023, Magic Eden rapidly gained control of over half of the Ordinals trading volume, peaking at around 80% of Bitcoin Ordinals and Runes activities. During this time, Bitcoin native assets accounted for approximately 70% of the platform's total trading volume.
Founded in 2021 primarily as a Solana NFT marketplace, Magic Eden quickly scaled its business into a multi-chain operation. The firm has secured $157 million in venture funding, including a substantial $130 million Series B round in 2022, which valued the company at about $1.6 billion.
The CEO recently shared insights into this strategic overhaul, emphasizing a transition into a new era where finance converges with entertainment. Magic Eden plans to streamline its focus toward marketplace offerings centered on Packs and Solana, while intensifying its efforts on Dicey, a crypto casino and sports betting platform.
This decision was prompted by a significant cost imbalance, as 80% of expenditures were tied to products that generated only 20% of the revenue. Currently in closed beta, Dicey has approximately 200 users who have collectively wagered more than $15 million in just two months.
In addition to discontinuing support for Bitcoin and EVM marketplaces, Magic Eden will also end NFT buybacks and refocus on ecosystem design and product initiatives tied to its $ME token. The company intends to keep $ME at the heart of both Magic Eden and Dicey, as it shifts to prioritize crypto entertainment and Solana-related offerings.
This restructuring indicates a strategic bet that future growth prospects lie in token trading and iGaming, rather than maintaining multi-chain NFT marketplaces.