Magic Eden CEO and co-founder Jack Lu stated that the cryptocurrency market is entering a new phase characterized by large-scale betting and prediction products, with trading data indicating record activity across these platforms.
In a post on X on Monday, Lu observed that speculation has become a mainstream activity, driven by the integration of prediction markets, sports betting, and real-money gaming into everyday media and finance.
Prediction Market Volumes Break Records
Lu's remarks coincided with prediction market trading volume reaching a new all-time high. Data from Dune Analytics shows that total volume reached $814.2 million on Monday, surpassing the previous record of $701.7 million set just one week prior.
Kalshi maintained its position as the leading platform by volume, featuring active markets across politics, finance, sports, and entertainment. Polymarket and Opinion also reported significant figures, contributing to the sharp increase in activity.
This growth aligns with broader exposure. Prediction markets have gained attention through major news coverage and entertainment events, while sports betting advertisements and sponsorships now dominate broadcast media. Lu believes this fusion of finance and entertainment is attracting users beyond the traditional cryptocurrency community.
Magic Eden Expands Beyond NFTs
Magic Eden is strategically positioning itself to capitalize on this evolving market. Lu confirmed that the company plans to launch Dicey, a crypto casino and sportsbook platform, later this quarter. Dicey is designed to enable users to host games and place wagers in a decentralized environment.
Earlier on Monday, Magic Eden also announced modifications to its revenue-sharing model with token holders. The company stated that 15% of its total revenue will be distributed to ME token holders.
Half of this distributed revenue will be allocated to ME token buybacks, while the other half will be distributed as staking rewards in USDC. The rewards will be contingent upon the amount of ME staked and the duration it remains locked. Monthly reward claims are scheduled to commence in March.
NFT Market Pressures Drive Strategy Shift
This strategic pivot follows a significant downturn in the NFT market last year. CoinGecko data indicates that the total NFT market value decreased by 68% in 2025, falling from $7.95 billion to $2.5 billion.
The market contraction led to scaling back of several industry events. Organizers of NFT Paris announced the cancellation of their 2025 conference after cost-cutting measures failed to bridge the funding gap.
Although NFTs have shown signs of recovery in early 2026, with market value increasing to over $3 billion, Lu emphasized that Magic Eden is no longer solely reliant on a single sector. With NFT value up by 28% in the first 20 days of the year, the firm is now combining this rebound with a broader initiative into speculation-based products.