Magic Eden shuts down EVM marketplace and multi-chain wallet: a return to the origin or a total strategic retreat?

On February 27, according to sources cited by Blockspace, NFT trading platform Magic Eden plans to shut down its Bitcoin and EVM markets and terminate its multi-chain wallet service. This platform, which once accounted for nearly 80% of Bitcoin Ordinals trading volume, has experienced a complete cycle in less than three years: from native Solana to multi-chain expansion to strategic contraction. On the surface, this appears to be a business adjustment, but when viewed in the context of 2026’s intensified infrastructure competition, frequent security incidents, and users’ growing disillusionment with the “all-in-one” narrative, Magic Eden’s decision may signal deeper industry trends.

Strategic Contraction Overview: Not Just a Retreat, But a Choice

Magic Eden’s current adjustment is not a gradual optimization but a decisive divestment. According to the plan, the platform will close its Bitcoin and EVM markets in the first week of March, with its multi-chain wallet entering “export-only mode” in mid-March and ceasing all services by early April. After this, Magic Eden will focus on NFT and asset trading within the Solana ecosystem. This decision marks a formal abandonment of its “multi-chain aggregator” positioning developed over the past two years, returning to its original focus.

Timeline of Expansion and Contraction

To understand the significance of this move, it’s helpful to review Magic Eden’s expansion path:

• September 2021: Established as a Solana NFT marketplace, capturing over 90% of on-chain NFT trading volume on Solana within months.
• March 2023: Launched Bitcoin Ordinals marketplace, capturing over 50% of Ordinals trading volume in one week, peaking at about 80% of Bitcoin NFT trading volume.
• January 2024: Officially launched a multi-chain wallet supporting Solana, Bitcoin, Ethereum, and Polygon, aiming to create a cross-chain asset management gateway.
• Mid-2024: Became the world’s largest NFT marketplace by monthly trading volume, with $734 million traded in March alone.
• February 2026: Disclosed plans to shut down Bitcoin, EVM markets, and the multi-chain wallet, returning focus to Solana.

From rapid expansion to decisive contraction, this process took less than two years.

Data and Structural Analysis: Expansion Did Not Yield Expected Returns

Despite Magic Eden once holding nearly 80% of Bitcoin Ordinals trading volume and native Bitcoin assets accounting for about 70% of its total platform transactions, this traffic did not translate into sustainable multi-chain user engagement.

A noteworthy detail is the potential gap between the number of multi-chain wallet downloads (over 100,000 on Android) and active usage. Users may install wallets to claim airdrops or specific assets, but their cross-chain interaction frequency remains low, turning “multi-chain” into a feature for display rather than a high-frequency use case.

Meanwhile, security incidents involving wallets from late 2025 to early 2026 are reshaping user trust in “multi-chain asset management.” Trust Wallet’s browser extension suffered a supply chain attack resulting in approximately $7 million in losses, and Holdstation lost 462,000 USDT due to infrastructure breaches—these events expose that managing multi-chain wallets involves risks beyond private key security, including contract interaction vulnerabilities, API leaks, and software distribution security flaws. When “multi-chain” equates to “multiple attack surfaces,” users are reevaluating whether aggregation truly outperforms specialization.

Public Opinion Analysis

Market reactions to Magic Eden’s adjustment vary:

• “Return to Core” camp: Believes Solana is Magic Eden’s foundation, with the ecosystem remaining active and engaged in 2026. Instead of spreading resources across multiple chains, focusing on deepening experience within their strengths makes more sense.
• “Strategic Failure” camp: Points out that Magic Eden was once a leading multi-chain platform, even surpassing Blur and OpenSea at times. Now abandoning Bitcoin and EVM markets suggests that their cross-chain expansion failed to generate a positive cycle, and the multi-chain wallet did not become a true user gateway.
• “Industry Shift” camp: Highlights CEO Jack Lu’s mention of shifting focus from NFT markets to crypto entertainment, such as prediction markets. They see Magic Eden not as a simple contraction but as seeking new growth avenues—after weakening NFT narratives, the platform needs new business pillars.

Narrative Authenticity and Deeper Questions

Magic Eden’s contraction prompts a fundamental question: Is the “multi-chain wallet” a genuine user need or merely a narrative during fundraising?

In reality, multi-chain wallets do address some pain points, such as assets scattered across different chains. However, by 2026, the market faces frequent security threats like bridge hacks, supply chain attacks, and wallet poisoning, leading users to question the safety of “one wallet managing all assets.” Cases like Trust Wallet and Holdstation show attackers shifting from smart contract exploits to infrastructure and development toolchain attacks—implying that the more chains a wallet supports, the more third-party dependencies it has, increasing potential risks.

From a speculative perspective, Magic Eden’s abandonment of multi-chain wallets may reflect a reassessment of whether users truly need another multi-chain wallet. As major public chains develop mature DeFi ecosystems and cross-chain bridges become more reliable, the core advantage of wallets shifts from “supporting many chains” to “performing exceptionally well on a single chain.”

Industry Impact Analysis

Magic Eden’s move could trigger ripple effects:

• NFT Market Dynamics: Bitcoin ecosystem NFTs may see a reshuffle, with Ordinals trading volume previously reliant on Magic Eden seeking new platforms.
• Wallet Sector: As leading players retreat from multi-chain strategies, “Wallet as a Service” competition may shift from “breadth” to “depth” and “security.” New wallets will prioritize transaction success rates, security audits, and seamless, KYC-free experiences.
• Public Chain Ecosystems: Solana re-emerges as a focal point—if Magic Eden’s contraction leads to new, more competitive native Solana features, Solana’s position in NFT and meme trading could strengthen. Conversely, EVM chains and Bitcoin ecosystems lose a key traffic gateway.

Scenario Evolution and Forecasting

Based on current information, Magic Eden’s adjustment could lead to three potential scenarios:

Scenario 1 (Baseline) — Focused Growth: Magic Eden concentrates resources on Solana, collaborating with wallets and DeFi protocols within its ecosystem, launching new “crypto entertainment” services, and finding a second growth curve beyond NFTs.

Scenario 2 (Risk) — Contraction Chain Reaction: Shutting down Bitcoin and EVM markets raises concerns about Magic Eden’s long-term viability, with core Solana users questioning whether the platform will abandon Solana next. Without clear strategic communication, the platform risks losing both users and liquidity.

Scenario 3 (Evolution) — Industry Paradigm Shift: Magic Eden’s choice influences other projects, leading to a “de-multichain” trend in late 2026—projects may prioritize deepening their own ecosystems over supporting all chains, focusing on building moats through integration rather than broad coverage.