Magic Eden has unveiled a ground-breaking initiative to revive the floundering NFT market: a $1 million creator fund intended to spur creativity and push the limits of NFT applications on the Polygon blockchain. While issuing an official statement on this, Magic Eden management said that they are working on bringing in a new era of innovation beyond the world of expensive cartoon avatars.
The NFT market has seen a significant expansion earlier this year but has unfortunately started struggling with a protracted decline. The market has been negatively impacted by decreased trade volumes and a crack in investor trust despite rising demand for digital assets.
Analysis on the DL News platform said that the difficulties in the NFT sector in 2023 have put doubt on the industry’s future, and some people have hypothesized that the issues may go beyond simple changes in market attitude. Statistics, as reported by Aleks Gilbert, a freelance cryptocurrency journalist, show how much the NFT market is struggling.
The number of weekly trades, stable after Terra, decreased by about 75% this year. The reduction in weekly transaction volume is concerning as 2023 progresses, creating a difficult situation for NFT platforms and creators looking for thriving ecosystems.
Company Explains Reason Behind The Huge Investment, Transaction Volume Falls
The statement by Magic Eden says that the company fund seeks to support initiatives beyond the common perception of NFTs as merely collectible avatars. They also revealed that the Magic Eden program aims to encourage creators to produce works that provide people with utility, interactivity, and value beyond the original purchase.
Part of the statement reads, “Magic Eden wants to help the sector exit its present ‘ultra bear market’ by concentrating on initiatives that emphasize content and value.” The continued, “the objective is to find initiatives with the potential to transform the NFT market, advance the adoption of blockchain technology, and engage users in significant ways.”
An anonymous data analyst working for the cryptocurrency venture capital firm Dragonfly named Hildobby has gathered statistics showing the extent of the NFT market’s fall. According to Hildobby, weekly transaction volume has fallen by almost 90% compared to pre-crash levels, signaling a dramatic change in investor attitude and trading activity.
Magic Eden Recommends Innovation, As The NFT Market Reinvent Itself
Head of gaming at Magic Eden, Chris Akhavan, told journalists at DL News that amid the presently ravaged NFT market, the company is looking to find and grow the next NFT project. Akhavan also insists that the next big thing is not coming from Bored Ape Yacht Club-related collections. Akhavan said during the interview that conventional collections like Bored Ape Yacht Club are stale, limited, and sometimes demand less attention.
He added that the company looks forward to seeing more interesting projects whose utility goes beyond a Profile Picture Non-Fungible Tokens (PFP NFTs) project. The NFT market’s resolve to overcome its current difficulties is highlighted by Magic Eden’s announcement of a $1 million creator fund targeted at projects on the Polygon blockchain.
Akhavan also said that the $1 million funds will be disbursed as grants of at least $10,000, but added that there will also be provision for $100,000 grant seekers. Experts has warned that the NFT landscape may experience a dramatic rebirth as Magic Eden funds important and cutting-edge projects, inspiring a fresh wave of innovation and adoption.
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