Ethereum News Update: MegaETH's $7 Billion Buzz Compared to $1 Billion Approach: Undervaluing as a Wager on Ethereum's Prospects
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 swift oversubscription highlights the increasing appetite for scalable
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
