To conduct a fair analysis of the price of the Magic Eden (ME) token, we consider several key financial parameters.

1. Market capitalization

Market capitalization = token price × number of tokens in circulation.

At the time of listing:

Token price: $5.38.

Total token issue: 1 billion $ME.

However, at the start, only a portion of the tokens are available for circulation. For example, at the time of the TGE (Token Generation Event), 12.5% ​​of the total emission, or 125 million tokens, were available.

Therefore, the market capitalization at the time of listing:

5.38 \times 125,000,000 = 672,500,000\ USD $$

For comparison, the **capitalization of the Blur ($BLUR) token**, which is a competitor in the NFT market, is currently around $200-250 million. This suggests that ME is overvalued compared to the competition.

2. Utility assessment

The utility of a token has a big impact on its real value:

- **Ecosystem Usage**: $ME used for staking, DAO management, NFT trading and fee reduction1. This supports demand, but practicality depends on activity on the platform.

- **Magic Eden market share**: The platform occupies one of the leading positions in the NFT ecosystem, but its share is inferior to platforms such as OpenSea.

3. Comparison with other projects

| **Token** | **Capitalization** | **Price** | **Number of tokens in circulation** |

|-----------------|-------------------|------------|--------------------------------|

| $ME (Magic Eden)| $672 million | $5.38 | 125 million |

| $BLUR (Blur) | $200–250 million | ~$0.40 | ~500 million |

| $RARI (Rarible) | ~$35 million | ~$1.10 | ~31 million |

By this comparison, ME is significantly overvalued relative to Blur, which has a larger market share.

4. Predicted fair price

The fair value of a token can be calculated based on its market share and utility:

- If we assume that Magic Eden occupies **10-15% of the NFT market**, and the capitalization of Blur ($200 million) corresponds to a share of 30%, then an adequate capitalization of ME could be:

$$ 200 \times (10/30) = \sim66.7\ million\ USD.

For 125 million tokens in circulation, this corresponds to the price:

\frac{66,700,000}{125,000,000} \approx 0.53\ USD.

Visnovok:

The current ME price of $5.38 is well above the fair value (approximately $0.50-$1.00). The increase is due to the hype around the listing on Binance, but it may fall after the market stabilizes.#MagicEden

$ME