The Layer 2 blockchain developed by Consensys has launched its long-awaited token and airdrop.
More than two years after launching its mainnet, Ethereum Layer 2 network Linea has conducted its token generation event (TGE).
LINEA launched today at a $550 million market capitalization, but has struggled so far as airdrop recipients claim and sell their tokens. It’s down 20% so far to a $382 million market capitalization, or a $1.7 billion fully diluted valuation (FDV).
LINEA pre-markets on Hyperliquid opened above a $1 billion market capitalization when the TGE was announced, but quickly fell over the following days
Underwhelming TGEs have become common practice for Ethereum Layer 2s, with tokens such as ARB and OP falling roughly 80% from their 2024 highs, while high-profile Layer 2s that launched in 2024, like ZkSync and Blast, have plunged between 80% and 90% from their highs.
Despite its mainnet being live for years, the network struggled leading into the TGE, as it stopped producing blocks for 46 minutes overnight, and many users reported difficulties in claiming their airdrops today.
Linea product lead Declan Fox addressed the outage today on X, clarifying that the network suffered a sequencer issue after a “large bundle” transaction occurred, which, when executed in a large enough size, can place incredible strain on a blockchain’s tech stack.
As the fervor surrounding the LINEA airdrop cools off, attention is likely to turn towards Linea’s future activations and token emissions, with another 75% of the LINEA supply, worth $1.27 billion, yet to be distributed throughout the ecosystem.
