Introduction: Redefining the Speed Boundaries of Layer 2

In the competitive landscape of Ethereum scaling solutions, MegaETH stands out with its unique positioning as a “real-time Layer 2.” Unlike traditional Rollups pursuing balanced generalization, MegaETH focuses on extreme performance, targeting latency-sensitive sectors such as high-frequency trading (HFT) and real-time Web3 gaming.

In this first report (Part I), CoinEx Research analyzes MegaETH’s team composition, operational and capital strategy, and technical architecture and performance benchmarks. Part II will explore its ecosystem projects, strategic role within Ethereum, and long-term outlook.

MegaETH’s Team and Organizational Structure

MegaETH’s founding team blends MIT PhD-level research talent with senior ConsenSys executives, bringing together deep technical expertise and Ethereum ecosystem influence.

Yilong Li (Co-founder & CEO) – Ph.D. from MIT, specializing in high-performance consensus and stateless valididation.
Lei Yang (Co-founder & CTO) – Ph.D. candidate at MIT CSAIL, focusing on distributed systems and computer networks.
Shuyao Kong (Co-founder & CBO) – Former Global Business Development Head at ConsenSys, MBA from Harvard Business School.
Namik Muduroglu (Co-founder & CSO) – Former ConsenSys Strategy Department member; investor at Hypersphere Ventures.
Laura Shi (Co-founder & COO) – Former Global Market Development Lead at ConsenSys; background in investment banking and crypto market expansion.

From CoinEx Research’s perspective, this combination — technical innovation + ecosystem connectivity + operational and capital foresight — forms the structural foundation of MegaETH’s rapid early traction. In particular, the team’s long-standing ties with Ethereum core figures such as Vitalik Buterin and Joseph Lubin grant the project unusually high ecosystem trust, accelerating both developer onboarding and institutional recognition

MegaETH Capital Strategy: Ecosystem-First, Network-Second

MegaETH’s fundraising approach breaks away from the industry norm. Even prior to mainnet launch, its ecosystem projects collectively secured $75M, resulting in an unconventional “ecosystem-first, network-second” development path.

In October 2025, MegaETH executed a public sale through Sonar that was oversubscribed 27.8× in five minutes, with total commitments reaching $1.39B and an FDV of $1B. More importantly, the team proactively repurchased 4.75% of early tokens before TGE, removing low-cost allocations and improving market structure at launch.

CoinEx Research interprets this as a clear signal of internal conviction and disciplined liquidity management. This move also reduces early-stage sell pressure — a common weakness for many L2s.

MegaETH’s capital design reflects a “deflationary growth model” — capital drives the ecosystem, and the ecosystem reinforces network value.Amid widespread L2 overvaluation and low application activity, MegaETH’s bottom-up, ecosystem-led model may prove key to sustainable growth.

MegaMafia Accelerator: The Engine Behind Ecosystem Growth

Operationally, MegaETH has demonstrated outstanding incubation capabilities through the MegaMafia Accelerator Program:

MegaMafia 1.0: 15 projects incubated, total funding $40M (including CAP, Euphoria, Pump Party, Noise, etc.).
MegaMafia 2.0: 45+ projects incubated, attracting founders from BlackRock, Goldman Sachs, and other institutional backgrounds.

Unlike “airdrop-driven” L2 marketing, MegaMafia emphasizes founder-driven, non-speculative communities, focusing on underappreciated builders with both technical and product expertise.This “elite incubation + technical acceleration” model generates sustainable structural growth and long-term synergy across the ecosystem.

CoinEx Research views this as a hybrid of “Silicon Valley-style incubation” and “blockchain-native incentives.”MegaMafia doesn’t just provide capital—it creates a flywheel of ecosystem feedback that continuously strengthens the network itself.

Technical Architecture of MegaETH

MegaETH’s technical system revolves around the concept of a “Real-Time Layer 2”, aiming to achieve Web2-level execution performance while inheriting Ethereum’s security.Its innovations span five dimensions: Sequencer design, hybrid rollup mechanism, state storage optimization, data availability, and overall performance.

Sequencer-Centric Model: Structural Efficiency Breakthrough

MegaETH’s technical design is based on a highly optimized Sequencer-Centric (Sequencer Centralized) model.This model greatly improves execution efficiency and latency performance through specialized division of labor and consensus simplification:

Defined roles: Sequencer (ordering + pre-execution), Provers (ZK proof generation), Full Nodes (state verification + sync)
Single active Sequencer: Only one Sequencer operates at a time, rotating periodically
Near-zero consensus overhead: Multi-node consensus is removed, reducing confirmation latency to sub-millisecond levels

This architectural design enables MegaETH’s transaction confirmation speed to reach 1–10 milliseconds and its throughput to exceed 100,000 TPS, making it the first Ethereum Layer 2 to truly achieve Web2-level real-time performance.

From CoinEx Research’s perspective, the trade-off is clear: MegaETH voluntarily reduces Sequencer decentralization to unlock the performance ceiling required for institutional-grade workloads such as HFT and real-time matching. Given the divergence of Layer 2 design philosophies, MegaETH’s “performance-first” path may determine its early lead in the next wave of latency-sensitive applications.

Hybrid ZK + Optimistic Rollup: A Dual-Layer Security Model

MegaETH does not simply choose a single Rollup path, but adopts a Hybrid architecture that combines the execution efficiency of Optimistic Rollup with the security proof mechanism of ZK-Rollup:

Execution(Optimistic mode): Sequencer executes transactions optimistically, generates blocks quickly, and achieves millisecond-level confirmations.
Verification(ZK mode): Enable RISC Zero zkVM to generate zero-knowledge proofs and quickly adjudicate results only when disputes occur.
Challenge period: Reduced from 7 days to under 1 hour.

This “ZK on demand” model maintains fast execution for most activity while offering cryptographic finality when needed. CoinEx Research sees this hybrid structure as a practical answer to the excessive computational burden of fully ZK L2s. MegaETH achieves a dynamic balance between speed, security, and compliance, representing a new blueprint for next-generation Layer 2 security models.

SALT State Tree: 1000× State Access for High-Frequency Workloads

MegaETH introduces the SALT (State Acceleration Layered Tree), replacing Ethereum’s Merkle Patricia Tree. Benefits include:

1000× faster state access
19× compression for state synchronization
Optimized for HFT, gaming, and “sub-second state update” workloads

CoinEx Research believes SALT reflects the infusion of modern database engineering into blockchain design. Its layered indexing structure allows MegaETH to support multi-thread execution and parallelized state sync, establishing the foundation required for ultra-high interaction density.

EigenDA Integration: Modular Data Availability Layer

MegaETH relies on EigenDA instead of Ethereum calldata for data availability.

Cost efficiency through restaking-backed validation
Higher throughput for high-TPS workloads
Security inheritance via the EigenLayer validator set

This modular approach allows MegaETH to focus development on the execution layer without compromising L1-grade trust assumptions. CoinEx Research views this as a strategic alignment with the broader Modular Ethereum vision—extending security from Ethereum while retaining the flexibility and efficiency of a next-generation L2.

Performance Benchmark: Entering Web2 Territory

We benchmarked the performance of MegaETH with other mainstream high-performance blockchains (as shown in the table below), and the results show that it is far ahead in terms of block time and TPS.

MegaETH's block generation speed is about 40x faster than Solana's, bringing the blockchain into the Web2 response experience range for the first time in the "sub-millisecond latency" dimension, making it the preferred execution layer for institutional-level strategic trading and real-time Web3 applications.

Conclusion: Dual Engines of Technology and Capital

MegaETH represents more than just a faster Ethereum L2 — it’s a systemic convergence of capital efficiency, technological leadership, and ecosystem incubation.

In Part II, CoinEx Research will analyze MegaETH’s ecosystem projects, strategic positioning within Ethereum, and long-term competitiveness and risks.

Disclaimer: This content is for reference only and does not constitute investment advice. Information may be incomplete or inaccurate. Please do your own research; the author assumes no responsibility for losses.