Ethereum News Today: MegaETH's $27.8B Valuation Tests Market Amid Altcoin Supply Surge

MegaETH's public token sale has concluded with a total subscription amount of $1.39 billion, according to data compiled from the Ethereum layer-2 network's auction platform, according to a CryptoBriefing report. The sale, which launched on October 27, was oversubscribed within minutes, attracting bids from over 100,000 verified participants, according to a Yahoo Finance article. The final fully diluted valuation (FDV) of the project reached $27.8 billion, though allocations will be determined by a weighted allocation mechanism prioritizing past engagement with the MegaETH and Ethereum communities, CryptoBriefing noted.

The auction, which offered 5% of MegaETH's 10 billion total token supply, saw commitments exceeding 27.8 times the $50 million raise cap, CryptoBriefing reported. Bids were submitted in USDT, with individual maximum commitments capped at $186,282. The project's whitepaper noted that allocations will be finalized by November 5, with settlement and refund phases beginning shortly after, Crypto.news reported. U.S. participants were required to lock tokens for one year, while non-U.S. investors could opt for similar lockups to improve allocation chances, Yahoo Finance said.

MegaETH's rapid success has drawn comparisons to other major DeFi fundraising events in 2025, including Andre Cronje's $200 million round, according to a Yahoo Finance report. The network, backed by Ethereum co-founder Vitalik Buterin and ConsenSys founder Joe Lubin, has positioned itself as a high-speed scaling solution with testnet transaction execution speeds described as making Ethereum feel "instant," Yahoo Finance reported. The project's seed funding round in June 2024, led by Dragonfly Capital, raised $20 million, Blockworks reported.

The auction's implied valuation has varied significantly across reports. Early data from Arkham Intelligence showed 819 addresses committing $186,282 each in the first two hours, pushing the hypothetical FDV to $7.2 billion, Yahoo Finance reported. Later figures cited a $27.8 billion FDV, reflecting the dynamic nature of the auction's pricing mechanism, CryptoBriefing reported. The token generation event is expected to occur in January 2026, at least 40 days after the sale concludes, Yahoo Finance said.

Market analysts have highlighted the competitive landscape for MegaETH. With over $650 million in altcoin token unlocks scheduled in late 2025, the MEGA token's launch faces significant supply pressure, Yahoo Finance noted. However, proponents argue that MegaETH's novel infrastructure features—such as sequencer rotation and proximity markets—could justify its valuation amid Ethereum's ongoing scaling challenges, CryptoBriefing added.

The sale's success underscores growing institutional and retail interest in layer-2 solutions as Ethereum's network congestion and gas fees remain persistent pain points. As the final allocation calculations unfold, the market will closely watch how MegaETH's token distribution aligns with its stated goals of equitable community participation and long-term value retention, Crypto.news noted.