In brief, NFT marketplaces OpenSea and Magic Eden have ventured into fungible token trading this year, a strategic pivot attributed to a downturn in NFT activity. Market analysts suggest that these adaptations have helped stabilize their operations. Magic Eden, however, has indicated that token trading is not a core focus, as it seeks to broaden its scope into what it describes as “crypto entertainment.” The fervor surrounding NFTs has significantly waned by 2025, a stark contrast to the explosive growth seen in 2021 and early 2022, when digital artworks sold for millions and notable figures flocked to join exclusive NFT communities like the Bored Ape Yacht Club. According to CoinMarketCap, the total market capitalization of NFTs has plummeted by 99%, from a peak of $184 billion in 2023 to a mere $487 million.
In this evolving landscape, NFT marketplaces are compelled to adjust their strategies. Industry leaders OpenSea and Magic Eden are now incorporating fungible tokens into their platforms. “The shift is primarily a reaction to a noticeable decline in NFT transactions and the necessity for marketplaces to maintain their relevance within a maturing digital asset market,” stated James Butterfill, head of research at CoinShares, in an interview with Decrypt. “In this climate, marketplaces that once thrived on the rapid trading of digital profile images must now cultivate a broader economic foundation.”
### OpenSea’s New Era
In February, OpenSea unveiled a comprehensive overhaul of its platform, introducing cross-chain token trading through its decentralized exchange (DEX). This initiative, branded as OS2, facilitates token trading across 19 different blockchains and introduces a new reward system known as “Voyages.” Speculation surrounds the potential connection of this development to the anticipated launch of its SEA token. Adam Hollander, OpenSea’s Chief Marketing Officer, clarified that the introduction of tokens is not merely a reaction to the NFT market’s fluctuations, but rather an evolution of the company’s vision. “We aim to provide a platform where users can trade all forms of digital assets, including tokens, collectibles, and tokenized real-world items,” he remarked.
In October, OpenSea achieved a remarkable milestone with its DEX, reaching a monthly trading volume of $2.41 billion. However, this spike turned out to be an outlier as the volume plummeted by 75% to $581.48 million in November, according to DefiLlama. This performance pales in comparison to major DEX players like Uniswap, which posted nearly $80 billion in trading volume during the same time frame.
### Magic Eden’s Strategic Moves
Meanwhile, Magic Eden expanded its reach by acquiring the meme coin trading application Slingshot in April, marking its entry into the non-NFT trading sector. The marketplace now also supports multi-chain token trading through its platform and Wallet app. Nonetheless, Magic Eden has downplayed the significance of its foray into token trading. Chris Akhavan, Chief Business Officer at Magic Eden, stated, “Token trading does not constitute a major focus or a significant portion of our business. The market is heavily commoditized, with many wallets, trading applications, and exchanges available to users.”
Despite Magic Eden’s modest stance, Butterfill from CoinShares noted that the platform has been more proactive than OpenSea regarding token trading integration, particularly within Solana-based and gaming communities. He views Magic Eden as evolving into an “application layer” for digital culture, thereby expanding its strategic identity beyond just NFTs. “These adaptations have allowed both platforms to stabilize user engagement and diversify their revenue streams during a year when traditional NFT volumes have been low,” Butterfill explained. He emphasized that for these marketplaces to thrive in the long run, they must offer either distinctive features or seamless integration between NFTs and fungible tokens that competitors cannot easily replicate.
### The Shift Towards Crypto Entertainment
Akhavan further elaborated that Magic Eden is prioritizing its “crypto entertainment” offerings over token trading. The first of these initiatives is the Packs platform, which lets users open virtual packs containing real-world assets, such as Pokémon cards, along with various NFT packs. “We’ve already generated tens of millions in volume through Packs, and we have ambitious plans for this product,” he shared with Decrypt. Akhavan also hinted at the upcoming launch of Dicey, a crypto casino and sportsbook, which he described as a “major new product.” His ambition is for Magic Eden to emerge as the “biggest crypto entertainment brand in the world.”
In the broader context of the digital asset landscape, both OpenSea and Magic Eden are transitioning into roles as cultural liquidity hubs that connect creators, collectors, and token communities. Butterfill summarized that their future success will largely hinge on the expansion of these cultural economies and whether users view them as essential infrastructure rather than just optional tools.
