Magic Eden Bets on Prediction Markets as Trading Volumes Hit Record Highs

Magic Eden CEO and co founder Jack Lu said the crypto market is moving into a new phase driven by large scale betting and prediction products, as trading data shows record activity across these platforms.

In a post on X on Monday, Lu said speculation is now a mainstream activity, fueled by prediction markets, sports betting, and real money gaming blending into everyday media and finance.

Prediction Market Volumes Break Records

Lu’s comments came as prediction market trading volume reached a new all time high. Data from Dune Analytics shows total volume hit $814.2 million on Monday. This broke the prior record of $701.7 million set just one week earlier.

Kalshi remained the top platform by volume, with active markets across politics, finance, sports, and entertainment. Polymarket and Opinion also posted strong numbers, adding to the sharp rise in activity.

The growth lines up with wider exposure. Prediction markets have appeared in major news coverage and entertainment events, while sports betting ads and sponsorships now dominate broadcast media. Lu said this mix of finance and entertainment is pulling in users beyond the traditional crypto crowd.

Magic Eden Expands Beyond NFTs

Magic Eden is positioning itself to benefit from this shift. Lu confirmed that the firm will launch Dicey, a crypto casino and sportsbook platform, later this quarter. Dicey will allow users to host games and place wagers in a decentralized setup, according to the company.

Earlier on Monday, Magic Eden also announced changes to how it shares revenue with token holders. The firm said 15% of its total revenue will be distributed to ME token holders.

Half of that amount will go toward ME token buybacks. The other half will be paid out as staking rewards in USDC. Rewards will depend on how much ME is staked and how long it remains locked. Monthly reward claims are set to begin in March.

NFT Market Pressures Drive Strategy Shift

The move comes after a sharp drop in the NFT market last year. CoinGecko data shows total NFT market value fell 68% in 2025, sliding from $7.95 billion to $2.5 billion.

The downturn forced several industry events to scale back. Organizers of NFT Paris said they canceled the 2025 conference after months of cost cuts failed to close the funding gap.

While NFTs have shown signs of recovery in early 2026, with market value rising back above $3 billion, Lu said Magic Eden is no longer relying on a single sector. With NFT value up 28% in the first 20 days of the year, the firm is now pairing that rebound with a broader push into speculation based products.