MegaETH Raises $450M in Oversubscribed Token Sale Backed by Ethereum Founders

According to blockchain analytics firm Arkham, a total of 819 wallets each contributed the maximum allocation of $186,000 USDT, highlighting the intense demand during the auction phase.

Backed by MegaLabs, a venture supported by Ethereum co-founders Vitalik Buterin and Joe Lubin, MegaETH aims to deliver sub-millisecond latency and process up to 100,000 transactions per second. The project’s ambition is to achieve performance on par with traditional web applications while maintaining full Ethereum compatibility.

The final token distribution will be determined through a weighted allocation model, factoring in prior community involvement and locked commitments. The auction will conclude in two days, after which the ERC-20 MEGA token will become the backbone of the MegaETH network, set to go live in January 2026.

Brian Q, an analyst at Santiment, described the overwhelming investor interest as “a strong signal of confidence in ultra-fast Ethereum scalability.” However, he also cautioned that synchronized buying patterns might introduce heightened volatility once trading begins.

“We’re seeing the closest on-chain performance to web-level responsiveness ever achieved,” Brian said. “But when too many investors rush in at once, speculative pressure can build up quickly.”

The surge in enthusiasm comes as the market remains wary of overhyped blockchain launches. Earlier this year, Plasma, a stablecoin-focused chain, faced similar excitement before its token XPL plunged from $1.67 at launch in September to just $0.34, as early investors took profits and momentum faded.

MegaETH’s record-breaking sale underscores both the growing appetite for scalable Ethereum solutions—and the cautionary lessons from projects that flew too close to the sun.