NFT marketplace Magic Eden has raised $130 million in new funding, bringing its valuation to $1.6 billion, the company said Tuesday.

Electric Capital and Greylock co-led the Series B round, which includes investors Lightspeed Venture Partners, Paradigm and Sequoia Capital.

Magic Eden’s marketplace lets users create, buy and collect NFTs, or non-fungible tokens. The company was launched in September 2021, and Magic Eden Launchpad, its primary marketplace, has rolled out more than 250 projects since then. Magic Eden’s secondary market has more than 7,000 listed collections and sees more than 92% of NFT volume on Solana, according to a statement from the company.

Based in Mountain View, California, Magic Eden last raised a $27 million Series A in March, according to Crunchbase data. The new funding mints the company as a unicorn.

NFTs, which are something like digital collectibles, exploded in popularity last year. With NFTs, people are able to turn something such as their first tweet or a meme they’re featured in into a digital collectible that can be sold, with the ownership recorded on the blockchain. Marketplaces to mint and trade NFTs, such as OpenSea, have been created and raised funding from investors Coatue, Paradigm and Andreessen Horowitz (you can read more about NFT marketplaces here).

NFT-related startups have raised more than $3.3 billion in the past year, according to Crunchbase data. However, how funding to NFT-related companies could be impacted by the market downturn and recent crypto selloff is unclear.

Magic Eden’s Series B will be used to expand its primary and secondary marketplaces and invest in its workforce and technology, according to a statement from the company.

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Illustration: Dom Guzman