Linea’s Paradox: Price Crashes 40% While Network Activity Hits Record Highs
Linea's bleeding out—down 40% in a month while key metrics scream bullish.
Network activity just hit all-time highs. Transaction volume surged 300%. Daily active addresses exploded past previous records. Yet the token keeps sinking like a stone.
The divergence tells a brutal truth: metrics don't always move markets. Sometimes the charts just don't care about your fancy adoption numbers.
Traders are dumping despite the growth—classic crypto behavior where narrative trumps fundamentals every time. Just ask any VC who bought the top.
Linea's bleeding, but the network's breathing. Welcome to crypto, where the numbers lie even when they're telling the truth.
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.
