ME finally issued a coin, but NFT is really dead

Magic Eden finally issued a coin, and it was first issued on Binance.

On the first day, the market value was stable at more than 5 billion US dollars.

This FDV seems high, but it is not:

Because Magic Eden has accumulated a total financing amount of up to 150 million US dollars, and the latest round of financing valuation is as high as 1.6 billion US dollars.

The Magic Eden project was really unlucky. After completing the financing, FTX collapsed, dragging down Magic Eden, which was originally the NFT platform of the Solana ecosystem.

Two years later, although $ME was first launched on Binance, the VC buffer was not high.

Compared with $Move, which was listed on Binance at the same time, it can be said to be a world of difference:

As a new Layer2 upstart, $Move has raised only about 40 million US dollars, less than a quarter of $ME.

Generally, the cost of VC in this case is at most 400 million US dollars, or even less.

But $Move has a circulation market value of 1.5 billion US dollars, FDV is even more than several billion US dollars, and VC has more than ten times the buffer.

So the encryption industry is really fickle, many of you have used ME, but not many of you have used Move?

In fact, the more fundamental reason is that NFT is a product of the background of SEC policy suppression as a token and ICO, and today when encryption policies are becoming more friendly, the role of NFT as a token substitute will naturally fade.

Correspondingly, in the 24-year bull market, NFT performed poorly:

According to the latest data from CryptoSlam, NFT's highest monthly sales this year is only 2 billion US dollars, mainly benefiting from the classification of inscriptions as NFTs. It is far from the peak of 6 billion in a single month when NFT was popular in previous years.

Moreover, Bitcoin has been rising all the way this year, while NFT sales have been falling all the way this year. Compared with the sales at the beginning of the year, the sales at the end of the year are simply ankle-slashing.

Not only is the absolute sales volume of NFT falling, but Magic Eden's market share is also miserable:

This year's NFT trading volume is mainly contributed by Blur, and it is not ruled out that there is a lot of fake volume.

In November, Blur occupied 49% of the market share, ranking first; OpenSea followed closely with a market share of 29.2%; and Magic Eden ranked behind with a market share of 5.4%.

Now, $Blur's circulating market value is 680 million US dollars, and FDV is only 1 billion US dollars.

Opensea is even worse. Its peak valuation in 22 years was 13.3 billion US dollars. Now it is said that its valuation is only 1.3 billion US dollars, a drop of 90%.

According to this trend, $ME still has a lot of room for downward adjustment.