Ethereum layer-2 project MegaETH has pulled in $450 million during a token sale that drew nearly nine times its fundraising target within hours of going live.

Blockchain analytics firm Arkham revealed that 819 wallets committed the maximum amount, sending $186,000 worth of USDT to MegaETH’s sale address, with the total amount of investors reaching 14,491.

Backed by Ethereum co-founders Vitalik Buterin and Joe Lubin via parent company MegaLabs, MegaETH aims to deliver sub-millisecond latency and 100,000 transactions per second, performance that rivals traditional web applications while retaining Ethereum compatibility.

A weighted allocation system factoring in prior community engagement and lock-up commitments will determine final token distributions once the auction closes in two days. MEGA tokens, which will be erc-20 tokens, will underpin the network when trading goes live in January 2026.

Santiment analyst Brian Q said the demand demonstrated growing investor appetite for ultra-fast Ethereum expansions. “It’s the closest yet to web-level performance on-chain,” he said.

Brian balanced the bullish sentiment by adding that "such aggressive, synchronized buying can be a red flag," and that too many buyer "can amplify speculative pressure," potentially elevating the risk of a sharp reversal upon launch.

The crypto market reacted poorly to the launch of Plasma, a stablecoin-focused blockchain that had similar levels of hype. Plasma's native XPL token is down from $1.67 on its debut in September to $0.344, suggesting early investors are locking up profits and demand is struggling to maintain the flood of supply.