A Binance-listed altcoin that hasn’t met expectations may also fail to respond to market demands with its latest move.
Magic Eden’s (ME) newly announced token buyback policy corresponds to repurchasing approximately $20,000 worth of ME tokens per month, considering current income levels.
According to NFTpulse data, Magic Eden generated $12.8 million in transaction volume over the last 30 days, achieving a 9.1% share of the NFT market. However, the platform’s total revenue during the same period remained at only $267,000. 74% of the transaction volume occurred on the Solana network, and 25% on the Bitcoin network.
According to CoinGecko data, Magic Eden’s platform token, ME, is currently trading at $0.253. With a market capitalization of $108 million and a fully diluted value (FDV) of $253 million, the cryptocurrency has lost 89% of its value in the past year.
If current activity in the NFT market is maintained, Magic Eden’s strategy of allocating 15% of revenue to the ME ecosystem, implemented on February 1st, would only require the repurchase of approximately $20,000 worth of ME tokens per month. The limited revenue leads to a low repurchase amount.
Magic Eden announced that as of February 1st, it will allocate 15% of its revenue directly to the ME token ecosystem. 50% of this amount will be used for ME token buybacks from the open market, and the remaining 50% will be distributed as USDC to ME staking users based on their staking weight.
