NFT Market Shows Signs of Revival as Magic Eden Launches Gifting Feature and CryptoPunks Celebrates Homecoming

NFT Industry Seeks New Life Amid Market Downturn

The non-fungible token market has experienced significant challenges over the past three months, with declining interest particularly affecting blue-chip NFT collections ^[1]. However, two major developments signal efforts to revitalize the struggling sector: Magic Eden's launch of a digital gifting feature and an upcoming homecoming celebration for the historic CryptoPunks collection.

Magic Eden Introduces NFT Gift Packs

On January 8, Magic Eden activated a gifting option on its platform, allowing users to send NFT packs or collectible packs to friends, community members, or anyone with a supported wallet address ^[1]. The multi-chain NFT marketplace, which operates across blockchains including Solana, Ethereum, Polygon, and Bitcoin, announced what it calls a "2026 Giftathon" to promote the new feature ^[1].

The gifting functionality supports both SOL NFT Packs and Pokémon NFT Packs ^[1]. Recipients receive gifted packs directly in their wallet and can view them in their Gifts inbox and Packs page, with the option to open them immediately or save them for later ^[1].

To incentivize adoption, Magic Eden is distributing over 100 Pokémon packs as prizes. Every pack gifted by users before January 31 enters them for a chance to win packs valued at $25, Sapphire, and Emerald tiers ^[1].

The marketplace, which provides features for both creators and collectors with low fees and user-friendly tools, describes this initiative as part of a "continuous cycle" of reinvestment and gifting experiences designed to foster long-term growth in crypto culture ^[1].

How the Gifting Feature Works

The gifting process requires four straightforward steps: users navigate to the packs section and select their desired pack, adjust quantity and enter the recipient's wallet address with an optional message on the gifting screen, review gift details, and approve the transaction in their wallet ^[1]. Once confirmed, the gift appears in the sender's gift history ^[1].

CryptoPunks Homecoming Event Scheduled

Separately, the Infinite Node Foundation announced plans for a homecoming event celebrating the CryptoPunks NFT collection, scheduled to run from January 23 through January 25, 2026 ^[2]. The nonprofit organization, which assumed management of CryptoPunks last year after acquiring the intellectual property from Yuga Labs, is devoted to the preservation, study, and exhibition of digital art ^[2].

Established in 2025 by Micky Malka and Becky Kleiner, the Infinite Node Foundation aims to foster research, education, and access to digital art through exhibitions and community engagement ^[2]. Yuga Labs, known for creating the Bored Ape Yacht Club NFT series, had previously acquired the Punks IP from digital asset company Larva Labs ^[2].

The CryptoPunks collection, launched in 2017, consists of 10,000 unique, algorithmically generated 24×24-pixel portraits on the Ethereum blockchain ^[2]. Each Punk comprises 221 colors deployed across 576 pixels, with five foundational types: Ape, Male, Female, Zombie, and Alien ^[2].

Weekend Celebration Details

The homecoming event will begin Friday with an exclusive coffee reception and guided tours, followed by a private guided tour, a Punks-only preview, and a VIP Night ^[2]. Saturday's programming includes Artist Talks & Public Programming, Burgers & Brews, and a Punks Group Photo at the NODE Punks Mural by MASNAH ^[2].

The celebration concludes Sunday, January 25, with a Punks Brunch in partnership with OpenSea, the world's largest peer-to-peer marketplace for NFT collections ^[2]. OpenSea, where users can buy, sell, and trade digital assets including art, collectibles, music, and virtual items, shares the foundation's dedication to the preservation and cultural longevity of digital art ^[2].

These initiatives represent significant efforts by major players in the NFT space to reinvigorate interest in digital collectibles during a challenging market period.