The Magic Eden (ME) Foundation has announced the forthcoming launch of the ME token to enhance the trading of cross-chain digital assets in support of Web3 consumer decentralized applications (DApps).
The ME Foundation’s mission, as stated in a press release disclosed to Cointelegraph, is to assist in developing the ME decentralized autonomous organization (DAO) protocols “with community-led governance.”
The token is anticipated to be a central component of Magic Eden, a global non-fungible token (NFT) and Runes platform that intends to be the first to officially implement ME as its ecosystem token.
Trading across multiple blockchains
The purpose of the ME token is to enhance the capabilities of DApps by enabling the cross-chain trading of digital assets.
Despite its origins as a Solana (SOL) -based NFT platform, Magic Eden has since expanded to encompass a variety of blockchain platforms and is planning to incorporate the ME token to facilitate the expansion of its ecosystem.
Magic Eden’s mobile expansion and the integration of the ME token, as stated in the press release, will motivate users to “trade any asset on the largest chains at any time.”
“As the NFT and digital ownership ecosystem grows, other third-party DApps will continue to use these protocols and may formally adopt $ME.“
The expansion of the Magic Eden platform
The press release emphasizes the Magic Eden platform’s expansion, noting that it “has surpassed” $6 billion in total trading volume and accounts for more than 60% of all NFT revenue.
Earlier this year, the platform surpassed its competitors Blur and Yuga Labs in terms of NFT trading volume, with a total of $756.5 million in March. This growth is a testament to the platform’s success.
Mysticism In March, Eden’s increase in NFT trading volume led to a 194.4% increase in monthly trading volume, surpassing Blur’s $530.4 million total trading volume.
Top-performing collections, including CryptoPunks and Bored Apes, experienced rapid growth from 2021 to 2022 during the apex of the NFT hype cycle.
In May 2022, the NFT market peaked with a market capitalization of $526 billion. However, it has since declined by 97%, with a market capitalization of nearly $18 billion as of August 21.
In September 2023, a dappGambl report further demonstrated that 95% of the 73,257 NFT collections had a market capitalization of 0 Ether, further corroborating the value loss for investors.
