The Ethereum Layer 2 solution, MegaETH, launched its mainnet on February 9. A week later, it reported significant liquidity gains. Total value locked (TVL) surged by about 65%, reaching approximately $66.48 million, up from around $40.3 million. This data comes from DefiLlama.
MegaETH’s Liquidity Growth
Stablecoins primarily drive MegaETH’s on-chain balances. The platform’s stablecoin market cap currently stands at $99.2 million, reflecting a 56% increase in just one week. Bridged asset TVL has also reached about $122 million.
Top Protocols by TVL
- Kumbaya: Leading the app rankings with roughly $51 million in TVL.
- Avon MegaVault: A yield-oriented vault with a growing user base.
- World Markets: A unified decentralized exchange also attracting capital.
- Aave: Multi-chain lending protocol contributing to the ecosystem.
Challenges Ahead for TGE
Despite the optimistic liquidity trends, MegaETH has not yet fulfilled its conditions for the token generation event (TGE) of its MEGA token. Three key performance indicators must be achieved:
- A circulating supply of $500 million for the stablecoin MegaUSD (USDM).
- At least ten “Mega Mafia” applications each processing over 100,000 transactions across a minimum of 25,000 wallets.
- Three applications generating $50,000 in daily fees for an entire month.
As of now, none of these milestones have been reached. The platform’s dashboard indicates that only 5 out of the required 10 applications are live. Currently, USDM’s circulation is only about 10% of its target, with roughly 13% of that deposited into verified smart contracts.
Revenue Metrics
- Kumbaya: Generating approximately $19,000 in daily fees.
- Cap: Recording $13,000 in daily fees.
- Avon: Not yet achieving significant fee volume.
The MegaETH network shows promise in terms of liquidity and early app deployment. However, the necessary indicators for the MEGA token’s launch remain unmet, emphasizing the challenges ahead for the platform.
The public sale for MEGA took place on Sonar in late October, seeing overwhelming demand with over $1 billion in deposits competing for allocations. As MegaETH continues to evolve, its ability to meet the set KPIs will determine the success of its token release.
