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MegaETH Raises $450M in Oversubscribed Token Sale Backed by Ethereum Founders
The high-speed Ethereum layer-2 drew nearly nine times its target as over 14,000 investors rushed in.
Oct 29, 2025, 4:24 p.m.
What to know:
- MegaETH’s auction attracted $450 million in bids within hours, with 819 wallets maxing out at $186,000 each and a total of 14,491 participants.
- Backed by Vitalik Buterin and Joe Lubin’s MegaLabs, the network targets 100,000 transactions per second with sub-millisecond latency.
- Santiment’s Brian Q said the rush highlights investor appetite but warned that synchronized buying could heighten volatility.
Ethereum layer-2 project MegaETH has pulled in $450 million during a token sale that drew nearly nine times its fundraising target within hours of going live.
Blockchain analytics firm Arkham revealed that 819 wallets committed the maximum amount, sending $186,000 worth of USDT to MegaETH’s sale address, with the total amount of investors reaching 14,491.
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Backed by Ethereum co-founders Vitalik Buterin and Joe Lubin via parent company MegaLabs, MegaETH aims to deliver sub-millisecond latency and 100,000 transactions per second, performance that rivals traditional web applications while retaining Ethereum compatibility.
A weighted allocation system factoring in prior community engagement and lock-up commitments will determine final token distributions once the auction closes in two days. MEGA tokens, which will be erc-20 tokens, will underpin the network when trading goes live in January 2026.
Santiment analyst Brian Q said the demand demonstrated growing investor appetite for ultra-fast Ethereum expansions. “It’s the closest yet to web-level performance on-chain,” he said.
Brian balanced the bullish sentiment by adding that "such aggressive, synchronized buying can be a red flag," and that too many buyer "can amplify speculative pressure," potentially elevating the risk of a sharp reversal upon launch.
The crypto market reacted poorly to the launch of Plasma, a stablecoin-focused blockchain that had similar levels of hype. Plasma's native XPL token is down from $1.67 on its debut in September to $0.344, suggesting early investors are locking up profits and demand is struggling to maintain the flood of supply.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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