Magic Eden, an NFT marketplace, plans to announce a $27 million fundraising round on Monday, with Sequoia Capital and other investors participating. In its marketplace, Magic Eden uses the Solana blockchain to authenticate NFTs. According to Etherscan’s research, Solana, also known as the “Ethereum killer,” is capable of conducting more transactions per second and at a lower cost than Ethereum.
Opensea’s NFT dominance, according to Sequoia Capital, has a flaw because it relies on the less efficient Ethereum blockchain. As a result, the corporation opts to invest in the smaller player, which is based on what it considers to be a stronger blockchain for NFTs. According to research from the research firm DappRadar, people are most likely to buy or sell NFTs from larger markets like OpenSea, which has 43 percent of the market share and $23.3 billion in total sales.
OpenSea, on the other hand, is less efficient, according to Shaun Maguire, a partner at Sequoia Capital, because it relies on the Ethereum blockchain. On the other hand, Magic Eden, a Solana blockchain-based NFT marketplace, has a chance to beat OpenSea by being the first to introduce Solana NFTs. Other potential investors in the fundraiser include crypto venture capital firm Paradigm, Greylock, and Solana Ventures, in addition to Sequoia Capital.
During the NFT surge last year, Zhuoxun Yin, a former Coinbase product manager, co-founded Magic Eden. Trading volumes on OpenSea have dropped by half in the last month. Despite this, according to NFT data source CryptoSlam, NFT sales surpassed $2.9 billion in February, and investors predict long-term demand to remain strong.
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