In the fast-paced world of crypto, a single tweet can spark big conversations about the future of blockchains. Recently, investor Kyle (@0xkyle__) shared his thoughts on MegaETH's partnership with Ethena, calling it "genius" and highlighting how MegaETH is nailing the execution game for Layer 1 (L1) blockchains. Let's break down what he said and why it matters, especially for anyone keeping an eye on innovative tech in the space.

The Tweet in Focus

Here's the tweet that got everyone talking:

"btw the megaeth ethena partnership is genius and generally megaeth has been executing what i believe to be how L1s should always have, kingmaking apps and building their own shit

in like ten years im sure ppl will start realizing blockchains are commodities which make no sense. revenue should go back to the blockchain itself imo"

Posted on September 10, 2025, this post (view it here) quickly racked up likes and replies, with folks agreeing that MegaETH is onto something big.

Unpacking the MegaETH-Ethena Partnership

First off, what's MegaETH? It's a cutting-edge blockchain project billing itself as the "first real-time blockchain." Built as a high-performance L1 compatible with Ethereum's Virtual Machine (EVM), MegaETH focuses on blazing-fast transaction speeds—think thousands of transactions per second with sub-millisecond latency. This makes it ideal for real-time apps like gaming, DeFi trading, or even social platforms where delays can kill the user experience. You can learn more on their official site.

Ethena, on the other hand, is a DeFi protocol famous for its synthetic stablecoin USDe, which maintains its peg through delta-neutral hedging strategies. More recently, they've introduced USDtb, a stablecoin backed by tokenized U.S. Treasuries via BlackRock's BUIDL fund. This brings real-world assets (RWAs) into crypto, offering yield from traditional finance while staying on-chain.

The partnership? MegaETH is launching a native stablecoin called USDm in collaboration with Ethena. USDm is backed by Ethena's USDtb, meaning it's tied to those tokenized Treasuries. The clever part: The yield generated from these reserves will subsidize MegaETH's sequencer fees—the costs involved in processing and ordering transactions on the network. This setup allows MegaETH to run its sequencer "at cost," keeping transaction fees ultra-low for users. As CoinDesk reported, this could make MegaETH one of the most affordable chains out there, attracting more developers and users.

Kyle calls this "genius" because it aligns incentives across the ecosystem. By integrating a yield-bearing stablecoin like USDm, MegaETH isn't just building infrastructure—it's creating a self-sustaining economy where revenue from assets flows back to cover operational costs. This reduces reliance on high fees or inflationary token models, which plague many blockchains today.

Kingmaking Apps and Building Their Own Ecosystem

Kyle praises MegaETH for "kingmaking apps and building their own shit." In crypto lingo, "kingmaking" means strategically supporting and elevating key applications to drive network growth. MegaETH isn't waiting for apps to come to them; they're actively partnering with top protocols like Ethena to bootstrap killer features. This approach turns the blockchain into a hub for high-value activities, rather than a generic ledger.

On top of that, MegaETH is developing its own tools and features, like advanced sequencing tech and real-time capabilities, to stand out. It's a playbook that other L1s could learn from: Focus on execution, integrate revenue-generating mechanisms, and prioritize user-friendly economics.

Blockchains as Commodities: A Forward-Thinking View

The second half of the tweet drops a bombshell prediction: In ten years, people will see blockchains as "commodities which make no sense." Commodities here likely mean interchangeable, low-differentiation products—like how one barrel of oil is much like another. In Kyle's view, the current hype around unique blockchains might fade as tech standardizes, making it harder for chains to justify high valuations without real utility.

His solution? "Revenue should go back to the blockchain itself." Instead of profits leaking to external parties (like validators or investors), mechanisms like USDm ensure yields and fees cycle back into the network. This creates a more sustainable model, where the chain captures value from its own ecosystem. It's a nod to ideas in DeFi innovation, where protocols like Ethena are pioneering ways to blend TradFi yields with crypto.

Why This Matters for Meme Tokens and Beyond

While MegaETH isn't a meme token itself, its tech could supercharge the meme economy. Imagine launching and trading viral tokens on a chain with near-instant speeds and rock-bottom fees—no more getting front-run or paying gas wars during hype cycles. Partnerships like this show how foundational tech evolves to support fun, speculative assets like memes, making the whole space more accessible.

In replies to Kyle's tweet, users echoed the sentiment. One called it "outstanding," while another noted how MegaETH is "putting their skin into it" by building robust infrastructure. It's clear this partnership is turning heads and could set a new standard for L1s.

If you're into blockchain tech or just curious about where crypto is headed, keep an eye on MegaETH. Moves like the Ethena collab are exactly what Kyle means by smart execution—proving that in crypto, innovation plus incentives equals long-term wins.