Markets News Report
May 02, 2023

Magic Eden Shifting Attention to Solana After Briefly Losing NFT Marketplace Dominance to Tensor

In Brief

Magic Eden briefly lost its top Solana marketplace spot to the new Solana “pro NFT trading” marketplace Tensor last week.

Tensor was launched in 2022 and raised $3 million in seed funding in March.

Solana is refocusing on Solana as it faces stiff competition from Tensor.

Magic Eden Shifting Attention to Solana After Briefly Losing NFT Marketplace Dominance to Tensor

Magic Eden is shifting its attention back to Solana after losing its marketplace dominance to a new competitor, Tensor. Launched in 2022, Tensor calls itself a pro-NFT trading marketplace for Solana and raised $3 million in seed funding in March.

Tensor took Magic Eden’s Solana NFT majority market share by trading volume for a few days last week. This happened after the April launch of the Solana profile picture (PFP) collection Mad Lads, which gave the Solana NFT market a much-needed boost after DeGods migrated to Ethereum and Polygon.

Employing a similar strategy to Blur, the Ethereum marketplace, and OpenSea competitor, Tensor offers rewards for trading on its marketplace, which attracted NFT collectors to the platform over Magic Eden. In March, Tensor launched its Season 1 airdrop that allowed Solana NFT collectors to claim free rewards that correspond to their trading activity on the network. 

To incentivize trading of the Mad Lads collection, both Tensor and Magic Eden have implemented reward programs. Tensor will be using 100% of the fees collected on Mad Lads to purchase NFTs from the collection and distribute them as rewards to traders on their platform for the first three months following the collection’s launch. On the other hand, Magic Eden waived trading fees for Mad Lads NFTs during the first 72 hours after minting and subsequently distributed over 5,000 SOL worth of Mad Lads trading fees back to their users.

According to The Block Research, Tensor has a total trading volume of $2 billion to date. Tensor’s entrance to the Solana NFT market has undoubtedly caught Magic Eden’s attention as the latter seeks to maintain its dominance in the Solana NFT market after expanding multi-chain in recent months. Amidst the Mad Lads frenzy, Magic Eden even posted controversial tweets targeting Tensor before deleting them.

Speaking to The Block, Tiffany Huang, head of marketing and content at Magic Eden, said that the market needs a deep, renewed focus on Solana and that the company considers Solana its home.

As per the Dune Analytics data, Magic Eden remains the leading Solana marketplace, with Tensor following closely behind. Specifically, Magic Eden holds a 65.5% market share, while Tensor has a 34.5% share.

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About The Author

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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Cindy Tan
Cindy Tan

Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via [email protected] with press pitches, announcements and interview opportunities.

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