Platform Pivots Towards Immersive, Real-Money Gaming
Magic Eden's chief executive officer and co-founder, Jack Lu, has stated that the platform is strategically positioning itself for an anticipated "supercycle" characterized by the convergence of finance and entertainment. This shift is driven by an accelerating interest in prediction markets and betting. Lu articulated in a post on X that speculation has now become a mainstream activity, and Magic Eden is actively building infrastructure to support this evolving landscape, signaling a deliberate pivot towards immersive, real-money gaming experiences.
“Speculation is mainstream now. And Magic Eden is building for this world,” Lu wrote on Monday.
“Prediction markets are all over Emmys and the news. Betting is the second fastest growing industry in the US after AI. Sportsbook sponsorships are all over everyone’s favorite sports broadcasts. Hyper casual games + real-money gaming are converging.”
Data compiled by Dune Analytics indicates that prediction-market trading volumes reached a new record of 814.2 million on Monday, exceeding the previous peak of 701.7 million observed the week before.
Kalshi continues to be a prominent platform across markets for politics, finance, sports, and entertainment, with Polymarket and Opinion also demonstrating strong performance as the sector experiences rapid growth.
Magic Eden to Capitalize on Speculation with New Platform
In the same announcement, Lu confirmed that the company's upcoming crypto casino and sportsbook platform, Dicey, is slated for launch this quarter. This platform is designed to encourage users to host games, place wagers, and engage socially within a decentralized ecosystem.
Earlier on Monday, Magic Eden announced that token holders would be eligible to receive a share of revenue from any new initiatives launched by the company.
A total of 15% of all revenue generated by Magic Eden will be distributed back to Magic Eden token holders, according to the company's statement.
This revenue will be divided equally between Magic Eden's buyback program and staking rewards, which will be paid out in the USDC stablecoin.
Revenue earned from staking will be determined by the amount of ME staked and the duration of the staking period, with USDC rewards becoming claimable on a monthly basis starting in March.
NFT Industry Faces Challenges in Recovery
These announcements arrive at a time when the NFT market capitalization has seen a significant decline, falling by 68% from 7.95 billion to 2.5 billion in 2025, as indicated by data from CoinGecko.
Organizers of NFT Paris cited the market pullback as a primary reason for the cancellation of the event this year.
“Despite drastic cost cuts and months of trying to make it work, we couldn’t pull it off this year.”
Even amidst broader industry headwinds, Lu highlighted that Magic Eden has maintained a robust marketplace business, reporting approximately 24 million in revenue over the past year.
The NFT market began 2026 with renewed momentum, experiencing a resurgence in market capitalization above 3 billion, representing a roughly 28% increase within the first 20 days of the year.