In-depth Analysis: Magic Eden's New Policy May Only Buy Back $20,000 in ME Tokens Monthly

Background and Market Performance

According to the latest data from nftpulse, Magic Eden's trading volume reached $12.8 million over the past 30 days, accounting for 9.1% of the NFT market share. However, the platform’s total income over the same period was only $267,000, with Solana chain transactions contributing 74% and Bitcoin network transactions making up 25%.

Platform Token Performance

Data from CoinGecko shows that Magic Eden's native token is currently trading at $0.253, with a market cap of $108 million and a fully diluted valuation (FDV) of $253 million. The token’s 24-hour trading volume is as high as $110 million.

Impact of the New Policy

Magic Eden plans to allocate 15% of its revenue to the ME token ecosystem starting from February 1. Based on current NFT market activity, this could result in only approximately $20,000 being spent monthly on buybacks. Half of this allocation will be used for token buybacks on the open market, while the remaining half will be distributed in USDC to ME stakers based on their staking weights.