Investors Inject More Cash into NFT Marketplaces Increasing Competition and Risk of Failure

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The wild wild west of Web3 continues to grow wilder as investors see the potential of huge gains. But with all that competition comes higher risk as there is simply not enough capital to see unconstrained growth.

Despite this, non-fungible tokens (NFTs) based on the Solana blockchain network have now gone live on OpenSea, the world-leading digital marketplace. The news came after the platform’s Wen Solana? video teaser on Twitter on March 30, 2022.

The support for SOL NFTs signals another growth milestone for OpenSea, which received a record $300 million fund from investors in January. At the time, the crypto unicorn announced that the fresh cash inject will be used to continue developing the marketplace, improving its services, and supporting a metaverse project.

Additionally, the fundraising event raised OpenSea’s market capitalisation to a stunning $13.3 billion, reinforcing the platform’s leadership position as the top digital collectables marketplace in the NFT world.

While there has been no formal announcement, users can now opt for the on-chain ‘Solana’. OpenSea has now onboarded 865,868 NFTs from popular SOL collections such as SolGods, Piggy Sol Gang and Degen Ape Academy.

Opensea is the world’s largest NFT marketplace.

Solana NFTs Marketplaces: Compete or Fail?

While the addition of Solana to OpenSea provides collectors and merchants with a more complete one-stop shop for all kinds of NFTs, speculation continues over the destiny of existing SOL-powered marketplaces such as Digital Eyes and Magic Eden.

Magic Eden, in particular, has been regarded as Solana’s OpenSea. The platform is also touted as the market leader in terms of trading volume and capability for SOL NFTs. This Solana-based NFT marketplace just raised $27 million in a Series A funding round led by Paradigm with participation from Electric Capital, Sequoia Capital, Kindred Capital, Greylock Partners, Variant Fund and Solana Ventures.

Jack Lu, the startup’s CEO, said that the funds would be used to fund blockchain gaming projects. Shortly afterwards, Magic Eden created Eden Games, a content platform for game developers worldwide.

According to DappRadar, Magic Eden outperforms all other SOL-based markets, with over $700 million in transactions.

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