An Ethereum layer-2 network has experienced a significant surge in investor interest, receiving nearly nine times its fundraising target within hours. Investors committed $450 million to secure MEGA token allocations during the auction launch that commenced on Monday.
The initial coin offering had set a cap below $50 million. However, the auction quickly saw 819 addresses submit maximum bids of $186,282 within a two-hour period. Blockchain analytics platform Arkham tracked this rapid influx, noting that the auction reached five times its target during the initial phase.
Token Distribution and Project Backing
MegaETH plans to distribute 5% of its total 10 billion token supply through this sale. The minimum bid for participation starts at $2,650. Buyers who opt for a one-year lock-up period will receive a 10% discount on their purchase price.
The project has secured backing from notable figures in the Ethereum ecosystem, including co-founders Vitalik Buterin and Joe Lubin, through its parent company, MegaLabs. Since launching its testnet in March, the network has set an ambitious target of processing 100,000 transactions per second with latency below one millisecond.
Distribution Mechanism and Token Utility
The final distribution of tokens will be determined by a special allocation mechanism once the countdown concludes in two days. This system takes into account participants' past engagement within the MegaETH and Ethereum communities, as well as their lock-up selections, to assign shares among them.
Once trading begins in January 2026, the tokens will function as standard ERC-20 assets. They will be instrumental in powering sequencer rotation and proximity markets. The cryptocurrency is slated to be available on selected centralized and decentralized exchanges operating within the MegaETH network.
Project Appeal and Future Outlook
Santiment analyst Brian Q noted that the project's appeal is largely attributed to its promising blockchain performance, which is comparable to that of regular applications, while also maintaining connectivity with the Ethereum network. The underlying technology is designed to offer enhanced speed and efficiency for users who require fast transaction processing.
The white paper outlines the token launch for January 2026. MegaETH aims to position itself as an extension of Ethereum's existing infrastructure, combining high throughput capabilities with the robust security of the broader Ethereum network.