Magic Eden Acquires Trading App Slingshot

Key Points:

• Magic Eden has purchased Slingshot, a trading app, to broaden its NFT marketplace offerings across various blockchain networks.

• The goal of the acquisition is to make crypto trading easier by removing the need for wallet configurations and asset bridging, thus enhancing the user experience.

• Magic Eden intends to integrate Slingshot's technology to provide more fiat-to-crypto options and AI-powered trading features.

Magic Eden, an NFT marketplace, has acquired Slingshot, a trading app that lets users view their crypto balance across various protocols.

With Slingshot, users can trade tokens from a unified USDC balance, bypassing the need for wallet configurations, bridging assets between chains, and handling gas fees. This move allows Magic Eden to expand beyond Solana and support additional blockchains, including Bitcoin.

“This acquisition marks a significant step in advancing Magic Eden’s vision of providing users worldwide with a seamless and secure way to buy and sell crypto and digital assets across all blockchains,” said Jack Lu, CEO and Co-Founder of Magic Eden, in a blog post.

“Combining Slingshot’s team of product innovators with Magic Eden’s top-tier marketing and scaling capabilities enhances our ability to shape the future of crypto,” Lu added.

Magic Eden believes that acquiring Slingshot will support its plans to offer more fiat-to-crypto onramps through platforms like Apple Pay and Venmo, as well as introduce AI-powered tools to simplify token discovery and trading.

In 2024, Magic Eden generated $75 million in revenue from its NFT marketplace, according to a post on X by Lu. He noted that integrating Slingshot’s abstraction technology positions Magic Eden to effectively compete with centralized crypto exchanges.

However, this acquisition comes amid a shrinking NFT market. DappRadar’s report shows that NFT trading volumes decreased by 19% in 2024, despite a broader market bull run. Recently, NFT marketplace X2Y2 announced it would be shutting down due to declining trading volume.