Why Linea (LINEA) Price Plunged After Debut Despite Consensys Backing
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 widespread after token launches, reflecting short-term speculative dynamics.
Why is LINEA Token Price Dropping?
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 safety.
The LINEA token serves because the native asset of the Linea community, supporting exercise throughout each Linea and Ethereum. However, customers nonetheless pay gas fees on the network in ETH slightly 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.
According to the official tokenomics, the token does not have special allocations for insiders or buyers. Furthermore, the staff allotted 9% of the overall 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 important consideration, with LINEA rating as the highest trending coin on CoinGecko. Initial buying and selling mirrored sturdy demand, because the token surged to an all-time high of $0.046 shortly after launch.
However, heavy promoting stress emerged virtually instantly, driving the worth down sharply. CoinGecko data confirmed that LINEA plunged to an all-time low of $0.022 after the height. At the time of writing, the altcoin traded at $0.023, down roughly 30% since its launch.
Trading 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. Price depraved to $0.040, however I bought most round $0.030. I had 308,000 LINEA complete, bought the bulk, nonetheless holding 40,000,” a dealer posted.
Nevertheless, many merchants felt disillusioned with LINEA’s worth 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.
Crypto commentator Parcifap expressed sturdy skepticism concerning the LINEA token, warning that it might develop into considered one of 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.
“Almost each sybil is screaming, ‘Hold.’ Ask your self why they need you to be the exit liquidity. Best case? hedge round $0.035–$0.04,” the analyst cautioned.
Meanwhile, others reported being unable to assert their airdrop through the TGE, which affected their means to take earnings.
“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.
Despite this, some stay optimistic about the altcoin’s prospects.
“Despite unhappiness from airdrop I believe LINEA is so undervalued venture. After claiming worth 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. According to him, incentives won’t be restricted to Consensys. They will even come from different aligned initiatives and protocols.
“Together, we’re all bootstrapping the Linea Token Economy. Holding LINEA tokens alerts that you’re a Linea neighborhood member and are seemingly engaged in productive Linea Economy actions: constructing, liquidity provision/staking, utilizing, accumulating,” 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 the token stabilizes and positive aspects traction will rely upon how successfully the community and its backers construct sustainable demand past the preliminary airdrop wave.
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