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Author: Ryan Yoon, Tiger Research analyst; Compiler: Shaw Bitcoin Vision
Key takeaways
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Magic Eden transforms from a simple NFT market into a “crypto entertainment platform” by integrating game elements.
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Features such as “Lucky Buy” and “Packs” focus on user experience and have successfully rebranded the platform.
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The platform uses 30% of its revenue to buy back ME tokens and NFTs, creating a strong connection with holders.
1. Magic Eden: More than just NFT
Magic Eden was established in 2021 and quickly subverted the “NFT market war”.With low fees and creator-friendly tools, Magic Eden quickly emerged as a key player on the Solana platform.To date, Magic Eden has facilitated $15 billion to $20 billion in NFT transaction volume over the past four years.
However, this strong first impression resulted in a low valuation for the project.
This is because many investors still only view Magic Eden as “the best NFT trading platform on Solana.”Therefore, concerns about the entire NFT market have also led to concerns about Magic Eden itself.
However, Magic Eden has long gone beyond a simple NFT trading platform.It has established diversified revenue streams.
Co-founder Jack said on X that as of 2024, token trading revenue will account for more than 30% of total revenue.This marks a significant shift from the company’s past model of relying solely on NFT transaction fees.This transformation will continue as Magic Eden adds gaming capabilities in 2025 and evolves into an entertainment platform.
The “Packs” feature is a perfect example.This is a probability-based mechanism similar to the existing “Lucky Buy” tool.The data proves its success.According to a podcast from Presto Research, the “Pack” feature generated approximately $15 million in revenue in its first week.
Magic Eden is no longer just an NFT trading platform, it is now a “crypto entertainment platform” focusing on user entertainment.
2. Magic Eden=encrypted entertainment
Since its inception, Magic Eden has always adhered to a bold and interesting concept.Its core target users have always been “regular cryptocurrency users” rather than professional traders.The mass market is looking for intuitive and easy-to-use entertainment experiences rather than complex trading tools.
Most exchanges and token trading tools compete in the “PvP” market, selling low fees and professional-grade tools.This is a crowded “red ocean” with low expected returns.Most of the players in the cryptocurrency industry are focused on this area, chasing professional trading trends.
Instead, Magic Eden focuses on “fun.”While other companies were chasing big customers, Magic Eden adopted a “contrary” strategy to capture the huge consumer market.
2.1. Lucky Buy function
The best example of this strategy is Lucky Buy.The product launches in September 2023.Users can play roulette and try to win high-value NFTs with a smaller investment without having to pay the full price.
Users can set their winning probability from 1% to 75% depending on the amount they pay.But this also determines their chances of winning the bid.The product provides users with less capital the opportunity to win bids while also providing sellers with additional liquidity.
Gamifying the purchasing process has generated huge buzz.Although the service is limited in the United States due to regulatory reasons, “Lucky Buy” has become Magic Eden’s fastest-growing product line based on organic demand alone.
2.2. Packs function
“Packs”, launched in late October 2025, continues this strategy.It brings the thrill of opening a physical card pack to the digital realm.Users can “open” digital card packs earned through in-app activity to find rare digital collectibles: from NFTs in top Solana and Ethereum collections to tokenized, graded Pokémon cards.
In its first week of release, the “Packs” feature generated approximately $15 million in revenue—more than the entire NFT industry combined, highlighting strong user demand.
Magic Eden is now doubling down on this product: adding multi-pack opening capabilities, expanding digital collectible categories, and more novel game mechanics such as card pack battles, gifts, and richer game effects.
This is a powerful user retention strategy.While users of other platforms analyze complex charts, Magic Eden users enjoy unpacking card packs.This is the essence of cryptocurrency entertainment.
3. Inevitable regulatory restrictions and positive breakthroughs
Strategies based on entertainment and speculation face strict regulation.The United States has taken a tough stance on cryptocurrencies under the SEC and the Biden administration.
In this environment, most companies would choose to back off or cut functionality.But Magic Eden didn’t back down.It uses advanced “geo-blocking” technology to technically restrict access to U.S. users and leverages its large global user base for growth.At the same time, Magic Eden always operates to the highest standards and complies with all relevant regulations.
Magic Eden prioritizes providing experimental products without a license to users outside the United States (such as South Korea).
While other companies languish in the face of regulation, Magic Eden has the courage to challenge regulation and strive to meet public needs.This model regards regulation as an “operational tool” to increase global market share, rather than as a passive constraint.
4. Buybacks: What the public really wants
High corporate revenue doesn’t mean much to investors if it doesn’t increase the price of the token in their wallets.Many cryptocurrency projects fail to tie platform revenue to token value.
Magic Eden announced a “buyback program” on November 13, 2025, to address this issue.The concept of the program is simple: Companies reinvest profits to support ecosystem value.Magic Eden promises to return 30% of NFT market revenue through the following structure:
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ME token buyback (15% of revenue): The company repurchases ME tokens directly from the market.This is similar to stock buybacks.Reducing the circulating supply puts upward pressure on the token’s value.
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NFT collection buyback (15% of revenue): The remaining 15% is used to repurchase important NFT collections.These assets are permanently stored in an on-chain vault called “Eden”.By directly maintaining the floor price, the company enhances the stability of the ecosystem.
The project first launched on Solana and will later be expanded to Bitcoin, Ethereum, Monad and other platforms.Magic Eden’s token economic model goes beyond a simple governance model.The company’s success directly drives token purchases and NFT prices upward.This systematically interprets the concept of “project success means community success” and truly meets the needs of the public.
5. Completion of crypto entertainment for the public
Magic Eden is no longer just an NFT trading platform, it is now a crypto entertainment platform for the masses, aiming to bring joy to the masses.
Magic Eden first built a solid financial foundation.Its wallet and exchange tools connect assets on decentralized blockchains.Later, it added features like “Lucky Buy” and “Packs” to attract a large number of users.To maintain this momentum, the company has launched a program that utilizes 30% of revenue for buybacks, providing clear financial returns to users.
Magic Eden’s strength lies in speed and market insight.While competitors are stagnant due to rules or complex technology, Magic Eden delivers the interaction and “dopamine” users crave.It boldly used geo-blocking technology and moved quickly when other companies were hesitant.
But there is still a huge gap in the crypto entertainment space.High-value areas such as prediction markets hold billions of dollars in growth potential that are currently untapped.Magic Eden is committed to leading this change and unlocking its value.To this end, the company is incubating some independent businesses, such as iGaming platform Dicey.These new businesses will drive the next phase of growth.
The final step is to integrate these tools into the mobile wallet.When finance and entertainment are perfectly integrated in one application, Magic Eden will become the main gateway to the Web3 world.
