Magic Eden CEO Predicts a ‘Supercycle of Speculation’

Magic Eden shifts focus to where finance merges with entertainment, says CEO.

Jack Lu, CEO of Magic Eden, announced a strategic shift for the company. He stated that the NFT marketplace will focus on the segment where “finance merges with entertainment.”

Excited to announce increasing our revenues flowing into $ME today. 15% going into $ME, split across buybacks and USDC yield.

Stepping back: we’re heading into a speculation supercycle — where finance merges with entertainment.

Prediction markets are all over Emmys and the… https://t.co/DyZ1HQQyTl

— Jack (@0xLeoInRio) January 19, 2026

Lu highlighted the growing interest in prediction markets and betting. He noted that speculation has become mainstream, and Magic Eden is adapting to these new realities.

This quarter, the company will introduce Dicey, its own crypto casino and betting platform. Users will be able to create games, place bets, and interact in a decentralized environment.

According to Lu, despite a prolonged downturn in the NFT market in 2025, the marketplace generated approximately $24 million in revenue. A representative of the platform described the native asset ME as the core of the revamped “crypto entertainment” ecosystem.

The decision comes amid a boom in prediction platforms. The daily trading volume in this sector recently reached a record $814.2 million, surpassing the previous high of $701.7 million. Kalshi remains the leader, with Polymarket and Opinion holding strong positions.

Payouts to Token Holders

Additionally, the Magic Eden team has revised the project’s tokenomics. ME holders will receive 15% of all platform revenues.

The funds will be distributed equally:

• 50% will go towards token buybacks;
• 50% will be allocated to staking rewards.

Payouts will be made in the stablecoin USDC. The reward size depends on the amount and duration of staking. Rewards can be claimed starting in March.

Earlier, analysts at a16z crypto stated that in 2026, the crypto market will focus on integrating its tools, such as prediction platforms and cryptographic proofs, into traditional business and infrastructure.