The Solana NFT Landscape: Tensor Surpasses Magic Eden
The Solana NFT space received a significant boost with the launch of Mad Lads in late April, a popular profile picture (PFP) collection that quickly rose to the top of the market. However, amidst the trading surge, Tensor, a newcomer in the marketplace, managed to surpass the dominant Magic Eden.
Tensor’s Journey to the Top
Tensor entered the scene in 2022 but gained traction when it introduced trading rewards in March. Recently, it secured the majority of the market share in terms of trading volume on Solana. According to data from Tiexo, Tensor currently holds a slight lead over the past seven days, with a market share of 45% compared to Magic Eden’s 44%.
The success of Mad Lads played a significant role in propelling Tensor to the top. Traders were drawn to Tensor’s specific promotion related to the NFT project, rather than Magic Eden’s offering. However, the question remains: Can Tensor maintain its momentum while competing against Solana’s established powerhouse?
Tensor’s Rise in Popularity
Tensor started gaining a significant market share in March when it introduced “loyalty” rewards for traders, mirroring a strategy employed by Ethereum marketplace Blur, which surpassed OpenSea in February. The startup, which secured $3 million in funding from VC firm Placeholder, positions itself as a platform for “pro” traders, providing a faster and more advanced interface.
Comparisons to Blur are intentional. Tensor shares similarities with Blur, but specifically caters to the Solana network. It has implemented a similar rewards program, although it has not confirmed the launch of a token. Traders are naturally intrigued, considering that Blur distributed hundreds of millions of dollars’ worth of tokens in February and plans to continue doing so.
Over the past few months, Tensor’s market share has steadily grown, according to Richard Wu, the co-founder and CTO of the company. However, it was only last week, during the Mad Lads frenzy, that Tensor surpassed Magic Eden and claimed the top position.
Magic Eden’s Promotions and Offerings
Magic Eden, too, offered special promotions centered around the Mad Lads NFTs. It introduced zero marketplace fees and announced the distribution of 2,000 SOL (approximately $43,700) to be airdropped to Mad Lads traders during the first 30 days after launch. Additionally, Magic Eden shared that it had returned over 5,000 SOL (equivalent to $109,400) worth of Mad Lads trading fees to its users.