Debates over NFT royalties resurface, this time on Solana (SOL). Royalty-free trading platforms are gradually gaining ground. Magic Eden which is the first NFT market on Solana adapts. Quickly controlling 90% of the market in June, it was on course to reach a valuation of $1.6 billion. But in recent weeks, its hold on the Solana market has been rapidly eroding. New and evolving competitions like Hadeswap, have seduced NFT traders with the allure of royalty-free transactions. They are grabbing market share in a way they haven’t yet in the much larger Ethereum NFT community.
A craze among traders for royalty-free transactions
The new rivals of Magic Eden attract traders by allowing them to earn higher profits. Indeed, royalty-free payments save them from paying more than 12% fees on each transaction. Solana’s (SOL) NFT market volatility then seems to have forced Magic Eden’s hand. The latter announced on Wednesday its association with Coral Cube, which is an aggregator allowing NFT sales at no cost. This is a partnership, not an acquisition, Magic Eden’s Huang told Decrypt.
The company also said it will give users the ability to determine what royalties will look like on its platform. The startup’s marketing and content manager added that the NFT platform will protect its brand by keeping creators’ royalties on the platform intact. But Magic Eden will also offer merchants the possibility of selling NFTs without payment of royalties via Coral Cube.
Magic Eden: a redesign of Solana (SOL)?
NFT creators typically set royalties between 5% and 10% on their collectibles, artwork, profile pictures, and video game items. On large trades, a 10% savings on fees makes a significant difference especially during market downturns. But the standalone code that powers NFTs is not immutable and allows users to buy and sell NFTs without paying royalties to creators.
Although angering creators and companies, this practice is gaining ground on Solana (SOL). Indeed, Yawww, an emerging marketplace has launched a platform that does not honor royalties from NFT creators. Solanart, the leading marketplace has followed suit by making creator royalties optional for NFT sellers.
Currently, the recently launched Hadeswap market is attracting more traders. Instead of using traditional NFT listings, this one relies on an Automated Market Maker (AMM) format.
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Solana (SOL): Magic Eden is losing market share!
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