Aave Deposits on MegaETH Cross $575M as Post-TGE Liquidity Pours In

Aave’s deposits on MegaETH crossed $575 million on Friday as capital continued flowing into the Ethereum Layer 2 network a day after its long-awaited MEGA token launch.

The figure represents a sharp jump from the roughly $355 million in total DeFi deposits MegaETH hosted at the time of the TGE on Thursday, when Aave already accounted for the bulk of the network’s total value locked (TVL).

MegaETH, which markets itself as a “real-time” blockchain capable of more than 100,000 transactions per second with sub-10 millisecond block times, launched its mainnet on Feb. 9 with Aave deployed on day one. As part of that arrangement, MegaETH committed to a five-year revenue guarantee of at least $10 million to the Aave DAO.

The Aave market on MegaETH revolves primarily around USDM, the network’s native stablecoin built with Ethena and backed by USDtb. Yield generated on USDM flows back to the MegaETH Foundation, which uses it to buy back MEGA, tying lending activity directly to the token’s economics.

Capital inflows have accelerated alongside MegaETH’s Terminal Points season, an eight-week campaign that opened on April 28 and runs through June 23, rewarding users for depositing into and using ecosystem apps.

MEGA opened trading at around $0.22 on Thursday before falling roughly 30% to $0.15 in early price discovery, well below the $6 billion fully diluted valuation its pre-market perpetuals notched on Hyperliquid last October.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.