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Magic Eden’s Market Share Drops Due To Solana NFT Traders Rejecting Royalties

Currently in the Solana NFT market, the argument over NFT royalties is heating once more, and marketplaces that forgo creator royalties are attracting eager traders and gaining market share in a manner that they have not yet in the wider Ethereum NFT community.

The dominant NFT marketplace on Solana over the last year has been Magic Eden, which soon gained control of 90% or more of the market and was valued at $1.6 billion in June.

But in recent weeks, its hold on the Solana market has been fastly diminishing as both new and experienced competitors have been successful in luring away NFT traders with the promise of zero-royalty transactions, which enable traders to squeeze out higher profits by preventing them from paying fees of up to 12% on every trade.

And now it seems as though Magic Eden has been pushed to act by the changing waves of the Solana NFT market.

The company declared on Wednesday that Coral Cube, a marketplace and organizer that permits zero-royalty NFT sales, was partnering with it. Additionally, Magic Eden hinted that it will let users choose how royalties on the platform would appear.

The head of marketing and content at Magic Eden, Tiffany Huang, told Decrypt  that the company will “protect” its brand by maintaining creator royalties on Magic Eden. However, it will also provide dealers the choice to sell NFTs via Coral Cube without paying royalties—apparently an attempt to keep it both ways in a market that is rapidly moving.

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