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Ethereum News Update: MegaETH's $7 Billion Buzz Compared to $1 Billion Approach: Undervaluing as a Wager on Ethereum's Prospects

Ethereum News Update: MegaETH's $7 Billion Buzz Compared to $1 Billion Approach: Undervaluing as a Wager on Ethereum's Prospects

Bitget-RWA2025/10/27 18:34
By: Bitget-RWA
- MegaETH's $350M ICO at $7B valuation marks fastest Ethereum token sale, leveraging real-time execution and 10B token supply. - Backed by Vitalik Buterin and $20M seed round, project aims to address Ethereum congestion with layer-2 scaling solutions. - Deliberate $999M underpricing strategy boosts community participation, contrasting inflated valuations in crypto market. - English auction format with 100K+ KYC participants shows strong grassroots support despite U.S. lock-up restrictions. - Market forecas

MegaETH’s recent developments have attracted $350 million in advance deposits, based on a theoretical $7 billion fully diluted value, making it one of the most rapidly oversubscribed token launches in Ethereum’s history. The layer-2 scaling platform, which claims to deliver almost instantaneous transactions, began its public sale on October 27 and surpassed its allocation limit by fivefold within just a few hours, according to a

. The token generation event for the project is set to finalize allocations in mid-December, with the full launch anticipated for January 2026, as reported by Coinotag.

The swift oversubscription highlights the increasing appetite for scalable

solutions, especially as the network continues to face congestion issues. MegaETH’s system, which utilizes real-time processing and offers a total supply of 10 billion tokens, has drawn support from notable figures such as Ethereum co-founder Vitalik Buterin and ConsenSys founder Joe Lubin. A $20 million seed investment led by Dragonfly Capital has further boosted confidence in the project’s direction, according to a .

Ethereum News Update: MegaETH's $7 Billion Buzz Compared to $1 Billion Approach: Undervaluing as a Wager on Ethereum's Prospects image 0

Although the notional valuation stands at $7 billion, the actual fully diluted value after adjustments is capped at $999 million for the 5% of tokens offered in the public auction, according to Coinotag. This intentional undervaluation is designed to better reflect market trends. Blockchain analyst Dr. Elena Vasquez explained that MegaETH’s tactic of launching tokens at a lower initial valuation fosters greater community involvement and supports organic price discovery over time, in contrast to projects that debut at high valuations and then experience steep declines.

The public offering uses an English auction format, enabling participants to place bids up to $186,282 in USDT. Token distribution is influenced by factors like on-chain engagement and activity on social platforms, Blockworks reported. More than 100,000 individuals completed KYC verification, indicating robust community interest. However, U.S. investors are subject to a mandatory one-year holding period, while those outside the U.S. can choose an optional lock-up with a 10% price reduction, Blockworks noted.

Market outlook remains cautiously positive. On Hyperliquid, the MEGA-USD perpetual contract currently values the token at a $5 billion FDV, with $17 million traded in the past 24 hours, according to a

. Data from Polymarket indicates an 89% chance that MEGA’s FDV will surpass $2 billion within the first 24 hours after launch, as found in the Blockworks analysis. Experts attribute this optimism to MegaETH’s emphasis on real-time applications, including DeFi and gaming, which complement Ethereum’s expanding use cases, Coinotag reported.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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