Magic Eden CEO and co-founder Jack Lu believes his company is strategically positioned to thrive during an upcoming "supercycle" where finance and entertainment converge, driven by a recent surge in prediction markets and betting.
Lu stated on X, "Speculation is mainstream now. And Magic Eden is building for this world." He highlighted the widespread presence of prediction markets, noting their coverage of events like the Emmys and general news. Betting has become the second-fastest growing industry in the U.S., trailing only AI, with sports sponsorships increasingly visible in broadcasts. He also pointed to the convergence of hyper-casual games and real-money gaming.
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.
Lu's comments coincide with a significant increase in prediction market trading volumes. Data from Dune Analytics shows that trading volumes reached a record $814.2 million on Monday, surpassing the previous record of $701.7 million set just last Monday.
Kalshi continues to lead in trading volumes across various markets including politics, finance, sports, and entertainment. Polymarket and Opinion are also demonstrating strong performance.
Magic Eden to Capitalize on Speculation with New Platform and Token Incentives
In his X post, Lu also confirmed that Magic Eden's new 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 interact with friends within a decentralized framework.
Earlier on Monday, Magic Eden announced that tokenholders would share in the revenue generated from new initiatives.
The company stated that 15% of all revenue generated by Magic Eden will be distributed back to Magic Eden (ME) token holders.
This revenue will be divided equally between ME token buybacks 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 stake. USDC rewards will be available for claiming monthly, starting in March.
NFT Industry Faces Challenges Amid Market Downturn
These announcements come at a time when the NFT market has experienced a significant downturn. According to CoinGecko data, the NFT market capitalization has fallen by 68%, decreasing from $7.95 billion to $2.5 billion in 2025.
Organizers of the NFT Paris conference cited the market pullback as a contributing factor to their decision to cancel the event this year.
Despite drastic cost cuts and months of trying to make it work, we couldn't pull it off this year.
Despite the broader industry struggles, Lu indicated that Magic Eden has maintained a "healthy marketplace business," generating approximately $24 million in revenue over the past year.
The NFT market has shown signs of recovery in early 2026, with the NFT market cap rising back above $3 billion, marking a 28% increase within the first 20 days of the year.