Magic Eden prepares for a “hyper-speculation cycle” as prediction markets hit record highs

According to Lu, speculation has gone mainstream: “Magic Eden is building products for that world.” His comments came as daily trading volumes on leading prediction platforms reached a new all-time high — $814.2 million — surpassing the previous record of $701.7 million set just a week earlier. Kalshi, Polymarket, and Opinion remain the top platforms by volume.

Lu said the betting industry is expanding rapidly, with its visibility in media and sports shaping new behavioral norms. He believes the convergence of hyper-casual games and real-money gaming is creating the next wave of mainstream demand.

Magic Eden plans to take advantage of the trend. Lu confirmed that Dicey, the company’s new crypto casino and sportsbook platform, will launch this quarter. The platform will allow users to place bets and host games in a decentralized environment.

Earlier that day, Magic Eden announced that ME token holders will be entitled to a share of future initiatives. Fifteen percent of company revenue will be distributed to tokenholders — split evenly between ME buybacks and staking rewards. Rewards will be paid in USDC, with the first distribution scheduled for March. Staking returns will depend on the amount of ME locked and the lockup duration.

The announcements come during a challenging stretch for the NFT market. According to CoinGecko, total NFT market capitalization fell from $7.95 billion to $2.5 billion in 2025. NFT Paris organizers canceled this year’s event due to market conditions. Still, 2026 has started on a stronger note: the sector’s market cap has recovered above $3 billion, rising 28% in the first 20 days of the year.