Metaplex raises $46 million to expand Solana NFT ecosystem

Metaplex raises $46 million to expand Solana NFT ecosystem

Metaplex raises $46 million to expand Solana NFT ecosystem

On Tuesday, Metaplex announced a $46 million funding round to expand Metaplex’s operations into the Solana NFT ecosystem as well as award grants to under-represented artists.

While Solana’s NFT market is still far behind Ethereum's in terms of volume, its entire market capitalization just surpassed $1 billion, according to Solanalysis data, with Metaplex driving much of the rise.


Metaplex Gets $46 Million In Funding

Multicoin Capital and Jump Crypto led the funding round, with participation from Solana Ventures, Alameda Research, and Animoca Brands. NBA luminaries Michael Jordan and Allen Iverson were also among the over 90 people in the round.

Metaplex launched its Solana-based NFT marketplace in June 2021. The protocol was launched with the help of the crypto exchange FTX. Generally, NFTs have helped artists earn more than $17 billion in sales.

Metaplex, the firm’s Solana-based protocol, is widely utilized to mint non-fungible tokens (NFTs) and as an infrastructure, allows developers to create self-hosted NFT stores. According to the startup, the protocol has generated over 5.7 million NFTs and 85,000 projects since its debut.

Sergey Vasylchuk, the director of the Metaplex Foundation, revealed plans to prioritize the metaverse and gaming applications in the coming year:

“The community is excited to build tools that make it easy for developers, game studios, and creators to get started in Web3. We believe the metaverse will be open, censorship-resistant, and globally accessible. In this metaverse, Metaplex will serve as a common protocol and NFT standard to empower the next wave of decentralized commerce, social and gaming experience.”

Metaplex will receive strategic assistance from influencers, like Michel Jordan, in addition to finance. The Metaplex Foundation will also get support from Joel Embiid, Kevin Love, and The Chainsmokers’ Mantis VC.


Booming Marketing for Solana NFT Projects

Layer-one blockchains like Solana provide an alternative to Ethereum’s high transaction fees while simultaneously lowering entry barriers for a wider audience. This has made Solana a trendy option among Web3 developers, as cost, speed, and community expansion are important considerations throughout the development stage, especially for newer projects.

Two major collections dominate the overall market valuation of the NFT market on Solana: Solana Monkey Business and Degenerate Ape Academy. The first is about $195 million, while the second is worth nearly $151 million.

According to data from Solanalysis.com, these two sums account for roughly 46% of the whole NFT ecosystem on the network.

On September 11, a Degenerate Ape Academy NFT — part of a collection of 10,000 algorithmically created 3D primates — became the first Solana NFT to reach $1 million. Nearly a month later, the most expensive Solana NFT sold for $2.1 million.

Many other projects such as Thugbirdz, Solsteads, Lotus Gangs, Pesky Penguins have also enjoyed exponential growth in the Solana NFT market.

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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