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

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.

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

Select users are already testing the programme.

“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.

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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