Since the launch of the Mad Lads NFT collection in April, the Solana NFT world has been on the rise. But that’s not the only notable thing: Magic Eden is no longer the dominant NFT marketplace after Tensor snatched the top spot.
Launched in 2022, Tensor has seen increased activity since March after rolling out trading rewards. According to data from Tiexo, the marketplace now commands 45% of the Solana NFT market, while Magic Eden comes in second with 44%.
The buzz around the Mad Lads collection has played a massive role in helping Tensor overtake Magic Eden. On top of that, many traders were attracted to Tensor when the NFT project launched because of the platform’s trading rewards, abandoning Magic Eden in the process. The big question is, how long will Tensor stay at the top?
Tensor started gaining dominance in March after launching loyalty rewards for traders. Ethereum-based NFT marketplace Blur made a similar move in February, helping the platform to overthrow OpenSea from the top spot that month.
Like Blur, Tensor, which raised over $2.5 million two months ago, also touts itself as a marketplace for Pro traders. In addition, the platform’s user interface looks similar to Blur. One of the key differences between the two is that Tensor does not have a token. Many NFT traders have been requesting the platform to launch one, but that has yet to happen.
Magic Eden and Tensor Promotions for Mad Lads NFT Collection
Immediately after Mad Lads dropped, Magic Eden ran a promotion campaign to attract more traders. The marketplace offered zero trading fees for thirty days. It also announced it would airdrop about 2,000 SOL to Mad Lads traders.
On the other hand, Tensor said it would use the trading fees collected within the first ninety days to buy the lowest-priced NFTs from the Mad Lads NFT collection and later give them away to loyal users. As of this writing, the marketplace has already bought 59 Mad Lads NFTs.
Based on the Mad Labs’ trading volumes on the two platforms, traders clearly found Tensor’s promotion more appealing.
War of Words
Tensor and Magic Eden have been going after each other since the latter made creator royalties optional last year. At the time, Tensor argued that eliminating royalties fees would promote wash trading.
Last week, Magic Eden noticed that Tensor was using its CDN (Content Delivery Network) to populate images on Tensor’s platform. Magic Eden then decided to replace the artwork on the Tensor platform with images displaying the Magic Eden logo and mascot. It did not end there; Magic Eden took to Twitter to call out Tensor for utilizing CDN without permission.
Meanwhile, Tensor’s Co-founder Ilja Moisejevs has alleged that Magic Eden began losing it immediately after it expanded to other blockchains, such as Polygon and Ethereum. According to Moisejevs, the community was disappointed in Magic Eden as it did nothing to promote Solana-based NFT projects when the SOL price fell sharply due to the collapse of crypto exchange FTX. Instead, Magic Eden pushed NFTs on other blockchains.
Following the criticism, Magic Eden’s head of Marketing, Tiffany Huang, said in an interview with The Block that the marketplace is now refocusing on Solana to show the network’s community that Magic Eden did not abandon it. Huang stated that Magic Eden is planning to include programs aimed at supporting collectors and creators as well as updating its Diamonds reward feature in the coming days.
Despite what appears to be a bitter rivalry between the two leading Solana-based NFT marketplaces, there has been a change of tone over the last few days, with both firms promising to work together going forward to serve the Solana community better.
Moisejves told news outlet Decrypt that despite the differences, Tensor wants to see Magic Eden doing well.
Finally, whether Tensor can retain the top spot when Mad Lads hype cools down remains to be seen.
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