Magic Eden’s CEO and co-founder Jack Lu has indicated that the cryptocurrency industry is about to enter a ‘speculation supercycle’ fueled by the rise of prediction markets and betting platforms that are merging entertainment with finance.

“Speculation is mainstream now. And Magic Eden is building for this world,” Lu stated in a post on X (formerly Twitter) on Monday.

Key Observations

Lu made these comments as trading volumes in prediction markets hit a new high of $814.2 million on Monday, surpassing the previous week’s total of $701.7 million, according to data from Dune Analytics.

Prediction Market Trading Volume Daily trading volume on prediction markets since September 2024. Source: Dune Analytics

Looking to the Future

In his remarks, Lu confirmed that Magic Eden’s upcoming crypto casino and sportsbook platform, Dicey, will launch this quarter. This platform is aimed at providing a decentralized environment for users to host games and place bets.

Additionally, 15% of Magic Eden’s revenue will be distributed among ME token holders, with allocations split between buybacks and staking rewards in USDC.

Market Trends

The latest announcements come in the wake of significant changes in the NFT landscape, where the market cap plummeted to $2.5 billion in 2025, marking a 68% decline. Despite these challenges, the NFT sector shows a promising recovery in early 2026, with the market cap surpassing $3 billion as interest returns.

Lu expressed intentions for Magic Eden to extend its offerings beyond NFTs as products driven by speculation gain popularity.