Quick Breakdown
- •Jack Lu says crypto is entering a “speculation supercycle” driven by prediction markets and betting platforms.
- •Prediction markets hit a record $814.2 million in daily trading volume.
- •Magic Eden plans to expand beyond NFTs with a crypto casino, sportsbook, and revenue sharing for tokenholders.
Magic Eden CEO and co-founder Jack Lu says the crypto industry is moving into what he calls a “speculation supercycle,” fueled by the rapid rise of prediction markets, betting platforms, and entertainment-driven finance.
In a post on X on Monday, Lu said speculation has gone mainstream, pointing to the growing visibility of prediction markets in pop culture, sports broadcasts, and everyday news coverage.
Excited to announce increasing our revenues flowing into $ME today. 15% going into $ME, split across buybacks and USDC yield.
Stepping back: we’re heading into a speculation supercycle — where finance merges with entertainment.
Prediction markets are all over Emmys and the… https://t.co/DyZ1HQQyTl
— Jack (@0xLeoInRio) January 19, 2026
“Speculation is mainstream now. And Magic Eden is building for this world,”
Lu wrote, adding that hyper-casual gaming, real-money betting, and crypto finance are increasingly converging.
Prediction Markets Hit Record Volumes
Lu’s comments come as prediction markets recorded $814.2 million in trading volume on Monday, setting a new all-time high and surpassing the previous record of $701.7 million set just a week earlier, according to Dune Analytics.
Kalshi continues to dominate trading activity across political, financial, sports, and entertainment markets, while Polymarket and Opinion are also gaining traction.
Magic Eden has also confirmed that revenue generated across its ecosystem will be shared with ME token holders. Fifteen percent of total revenue will go to holders, with rewards split evenly between ME token buybacks and USDC-denominated staking payouts. Staking rewards will be calculated based on the amount and duration of tokens staked, with monthly USDC claims starting in March.
Magic Eden Expands Beyond NFTs
As the NFT sector continues to recover from a deep downturn, Magic Eden is positioning itself beyond its roots as an NFT marketplace.
Lu confirmed that Dicey, Magic Eden’s upcoming crypto casino and sportsbook platform, is set to launch later this quarter. The platform will allow users to host games and place wagers in a decentralized environment, marking the company’s deeper push into speculation-driven products.
The move follows a tough year for NFTs. The total NFT market cap fell 68% in 2025, dropping from $7.95 billion to $2.5 billion, according to CoinGecko. The downturn even forced the cancellation of the NFT Paris conference this year, with organizers citing financial challenges despite months of cost-cutting efforts.
Lu said Magic Eden plans to lean into speculation-focused products as these offerings gain broader cultural acceptance, signaling a long-term strategy that extends well beyond NFTs.