Ethereum Updates Today: MegaETH's $27.8 Billion Valuation Challenges Market as Altcoin Supply Increases

MegaETH has wrapped up its public token sale, drawing in $1.39 billion in total subscriptions, based on figures gathered from the

layer-2 network’s auction site, as reported by . The sale, which began on October 27, was oversubscribed in just a few minutes, with more than 100,000 verified users placing bids, according to . The project’s final fully diluted valuation (FDV) hit $27.8 billion, though token allocations will be determined through a weighted system that favors previous involvement with MegaETH and Ethereum communities, CryptoBriefing stated.

During the auction, 5% of MegaETH’s 10 billion total tokens were made available, and the commitments surpassed the $50 million target by over 27.8 times, CryptoBriefing reported. Bids were made in USDT, with each participant limited to a maximum of $186,282. According to the project’s whitepaper, allocations will be finalized by November 5, with settlement and refunds to follow soon after, Crypto.news reported. U.S. investors had to lock their tokens for a year, while non-U.S. buyers could also choose a lockup to improve their allocation odds, Yahoo Finance noted.

MegaETH’s swift fundraising has been likened to other major DeFi capital raises in 2025, such as Andre Cronje’s $200 million round, according to

. Supported by Ethereum co-founder Vitalik Buterin and ConsenSys founder Joe Lubin, the network aims to deliver high-speed scaling, with testnet transaction speeds reportedly making Ethereum transactions feel “instant,” Yahoo Finance reported. The project secured $20 million in seed funding in June 2024, led by Dragonfly Capital, Blockworks reported.

Reports have shown considerable variation in the auction’s implied valuation. Initial data from

Intelligence indicated that 819 wallets each committed $186,282 within the first two hours, resulting in a hypothetical FDV of $7.2 billion, Yahoo Finance reported. Later updates put the FDV at $27.8 billion, highlighting the auction’s shifting pricing model, CryptoBriefing noted. The token generation event is anticipated in January 2026, at least 40 days after the sale ends, Yahoo Finance reported.

Analysts have pointed out the competitive environment facing MegaETH. With more than $650 million in altcoin unlocks expected in late 2025, the MEGA token’s debut will contend with significant supply pressure, Yahoo Finance observed. Still, supporters believe MegaETH’s innovative features—like sequencer rotation and proximity markets—could support its valuation as Ethereum continues to face scaling hurdles, CryptoBriefing added.

The strong outcome of the sale highlights increasing interest from both institutions and retail investors in layer-2 solutions, as Ethereum’s congestion and high gas fees persist. As allocation details are finalized, the market will be watching closely to see if MegaETH’s token distribution matches its promises of fair community participation and sustainable value, Crypto.news reported.