LINEA, the native token of the Layer 2 community Linea, has seen its worth dip almost 30% since launching yesterday.
Heavy promoting stress from the airdrop might be behind the sharp decline. Such preliminary turbulence is frequent after token launches, reflecting short-term speculative dynamics.
Why is LINEA Token Worth Dropping?
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For context, Linea is a Layer 2 scaling community for Ethereum (ETH) developed by Consensys, the corporate behind MetaMask. The community is designed to make Ethereum sooner, cheaper, and extra user-friendly with out sacrificing security.
The LINEA token serves because the native asset of the Linea community, supporting exercise throughout each Linea and Ethereum. Nonetheless, customers nonetheless pay gas fees on the network in ETH moderately than within the token itself.
Yesterday marked the token’s debut, accompanied by listings on main exchanges. LINEA launched with a complete provide of roughly 72 billion tokens.
In keeping with the official tokenomics, the token does not have special allocations for insiders or buyers. Moreover, the staff allotted 9% of the full provide for an airdrop to reward early ecosystem individuals.
“Early customers obtain tokens from an allocation equal to 9% of token provide, to be airdropped and totally unlocked at TGE,” the staff stated.
The launch drew vital consideration, with LINEA rating as the highest trending coin on CoinGecko. Preliminary buying and selling mirrored sturdy demand, because the token surged to an all-time excessive of $0.046 shortly after launch.
Nonetheless, heavy promoting stress emerged nearly instantly, driving the value down sharply. CoinGecko data confirmed that LINEA plunged to an all-time low of $0.022 after the height. On the time of writing, the altcoin traded at $0.023, down roughly 30% since its launch.
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Buying and selling exercise has additionally been substantial, with volumes spiking to $418 million. The transaction surge means that many airdrop recipients moved swiftly to liquidate their holdings, reinforcing the downtrend.
“$10,000 banked TGE was chaos — claims frozen ~1h. Worth depraved to $0.040, however I bought most round $0.030. I had 308,000 LINEA whole, bought the bulk, nonetheless holding 40,000,” a dealer posted.
However, many merchants felt disillusioned with LINEA’s value efficiency and even the allocated airdrop reward.
“Linea, once you take a look at the chart, you understand that you’ve been scammed,” a person stated.
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Crypto commentator Parcifap expressed sturdy skepticism in regards to the LINEA token, warning that it might grow to be one in all 2025’s high disappointments. He argued that pre-market buying and selling confirmed little enthusiasm.
He additional criticized Linea’s incentive design, noting confusion, and dismissed claims that Consensys’ backing alone would make sure the community’s success.
“Nearly each sybil is screaming, ‘Maintain.’ Ask your self why they need you to be the exit liquidity. Finest case? hedge round $0.035–$0.04,” the analyst cautioned.
In the meantime, others reported being unable to say their airdrop throughout the TGE, which affected their capability to take income.
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“The LINEA tokens have been despatched to the declare contract 50 minutes late for airdrop customers, whereas Binance customers have been already claiming and dumping immediately,” one other market watcher added.
Regardless of this, some stay optimistic about the altcoin’s prospects.
“Regardless of unhappiness from airdrop I feel LINEA is so undervalued challenge. After claiming value dumped once more. I see right here as a chance and have some from spot,” an analyst remarked.
Ethereum co-founder Joseph Lubin highlighted that holding LINEA could present entry to additional rewards. In keeping with him, incentives won’t be restricted to Consensys. They can even come from different aligned initiatives and protocols.
“Collectively, we’re all bootstrapping the Linea Token Financial system. Holding LINEA tokens indicators that you’re a Linea neighborhood member and are doubtless engaged in productive Linea Financial system actions: constructing, liquidity provision/staking, utilizing, amassing,” Lubin wrote.
The token’s first buying and selling day was marked by volatility. Now, the market stays divided. Some see LINEA’s sharp correction as a typical post-airdrop shakeout, whereas others warn of deeper structural flaws. Whether or not the token stabilizes and beneficial properties traction will depend upon how successfully the community and its backers construct sustainable demand past the preliminary airdrop wave.