Linea price fell more than 25% today, Sep. 11, erasing millions of dollars in value as its highly anticipated airdrop disappointed.
Summary
- Linea coin price crashed after the highly anticipated airdrop.
- Key metrics, such as decentralized finance TVL, reached a record high.
- Other users like stablecoins, fees, and active users have all soared.
Linea token dropped to a low of $0.0232, down from the post-listing high of $0.0466. Its 24-hour volume stood at $511 million, much higher than the current market capitalization of $357 million.
Linea price crashed as key metrics hit an all-time high
The ongoing Linea coin slide occurred even as its metrics advanced to record highs. Nansen data shows that the number of active addresses increased by 240% in the past 7 days to 556,124.
Similarly, the number of transactions rose by 111% to 2.46 million, making it the third-fastest-growing chain after Somnia and Starknet. This growth pushed fees up by 1,115% to $810,000.
These numbers indicate that Linea (LINEA), launched by Consensys, has strong network utility. Most importantly, DeFi Llama data reveals that the total value locked in the ecosystem spiked to a record high of $1.76 billion, up from the year-to-date low below $150 million.
Most of the ecosystem growth was driven by Aave, the lending protocol whose assets have advanced to $971 million. Renzo, a liquid staking platform, has seen its assets jump by 326% in the last 30 days to $352 million. Etherex, Euler, and ZeroLend are the other top dapps in the ecosystem.
Meanwhile, the total supply of stablecoins in the ecosystem has jumped to a record high of $296 million. Circle’s USD Coin supply in Linea has jumped to over $201 million, while Tether has soared to $94 million.
Why the Linea coin plunged after the airdrop
Linea price crashed after the highly successful airdrop that saw it listed by some of the top exchanges like OKX, Bybit, Bitget, and Bybit. This plunge, which mirrors that of other newly launched tokens, happened as some of the airdrop recipients sold their tokens.
In most cases, airdrop recipients sell all or some of their coins to take profits and diversify portfolios. Historical data on many tokens show that they rise to record highs after the airdrop and then plunge afterward.
Linea price will likely continue falling as selling pressure accelerates. However, the token may start rebounding, potentially as a dead-cat bounce. A recent example is Spark (SPK), whose token plunged from $0.0662 to $0.029 after its airdrop and then soared by 567% thereafter.
