Magic Eden has finally launched its coin, and it will be first launched on Binance.

On the first day, the market value stabilized at more than 5 billion US dollars.

This FDV may seem high, but it is not:

Because Magic Eden’s cumulative financing amount is as high as 150 million US dollars, and the valuation of the latest round of financing is as high as 1.6 billion US dollars.

The Magic Eden project was really unlucky. After completing the financing, FTX collapsed, dragging down Magic Eden, which was originally the NFT platform of the Solana ecosystem.

Two years later, although $ME was first listed on Binance, the VC buffer was not high.

Compared with $Move, which was listed on Binance during the same period, the difference is huge:

$Move, as a new Layer 2 player, has raised only about 40 million USD, less than a quarter of $ME.

Generally, in this situation, the VC's cost is at most 400 million USD, possibly even less.

But the circulating market value of $MOVE is already 1.5 billion USD, and the FDV is even more than tens of billions of USD, with VC having more than ten times the buffer.

So the crypto industry really loves novelty; many of you have used ME, but not many have used Move, right?

In fact, the more fundamental reason is that NFTs are a product under the pressure of SEC policies as tokens and ICOs, and today, with increasingly friendly crypto policies, the role of NFTs as a substitute for tokens is naturally fading.

Correspondingly, in the bull market of 2024, NFTs perform poorly:

According to the latest data from CryptoSlam, the highest single-month sales of NFTs this year is only 2 billion USD, mainly benefiting from inscriptions being classified as NFTs. This is far from the peak of 6 billion USD in single-month sales during the NFT boom in previous years.

Moreover, Bitcoin has risen steadily this year, while the sales of NFTs have instead decreased significantly; comparing the sales at the end of the year to the beginning of the year is simply a drastic cut.

Not only is the absolute sales of NFTs declining, but Magic Eden's market share is also very poor:

This year's NFT trading volume is mainly contributed by Blur, and it shouldn't be excluded that there are many wash trading activities.

In November, Blur captured 49% of the market share, ranking first; OpenSea followed closely with 29.2% market share; and Magic Eden came in third with 5.4% market share.

And now, the circulating market value of $Blur is 680 million USD, with an FDV of only 1 billion USD.

OpenSea is even worse; its peak valuation in 2022 was 13.3 billion USD, and now it is said to be valued at only 1.3 billion USD, a drop of 90%.

Looking at this trend, $ME still has a lot of room for downward adjustment.