Linea coin (LINEA) Crashes After the Launch: Is it a Temporary Downtime?

Linea coin (LINEA), the native utility token of the Linea Layer 2 blockchain network, has plunged following its launch on September 10, 2025. The Linea airdrop was one of the hottest topics of discussion in the crypto sphere, and its crash has incited even more attention from the crypto community.

According to the latest information, the token has plummeted 15% upon launch and currently trades at $0.02443. The analysts and experts claim that the token crash and price drop were due to an outage on the Linea network and the heavy selling pressure from the early investors. 

How Linea Coin Crashed Immediately After the Launch

Linea coin launch and airdrop campaign were the most celebrated events in the crypto industry. They organised the token generation event on September 10, and there were a lot of claims that the Linea token will initially rise and then fall after the airdrop.

Crypto.news previously reported that the most likely scenario was that the Linea price would rise initially and then pull back as some of the initial buyers and airdrop recipients sold.

Token crash is not something new for newly established crypto projects; it is a common occurrence for new crypto airdrops as well. Linea coin’s token debut was affected by a network outage just before the airdrop began, which further fuelled the current crash.

Some projects quickly recover from the initial crash, and some take quite a long time to regain momentum. Crypto.news reported that some tokens had gone parabolic after their airdrop and that Linea might do the same. They noted that the most recent example was Somnia, whose token had jumped by 335% from its lowest point.

The Potential Reasons for the Price Drop

The reason for the price drop can be anything, such as airdrop selling pressure, sequencer outage, and even comparison to other launches, etc. The majority of airdropped token recipients immediately sell them for profit, causing the price to drop through increased market supply.

The crypto experts believe that the airdrop dump could be a factor for this price crash of Linea coin. According to them, many new tokens like Arbitrum and Optimism experienced initial price drops just after the airdrop. 

Some analysts believe that the 46-minute network outage experienced before the airdrop caused enough damage to the network and have raised concerns about its stability and decentralisation. The outage happened due to a large bundle transaction, which was undoubtedly a fueling factor for the early plummet of Linea coin.

Some other experts in the arena noted that Linea’s Token Generation Event (TGE) did not live up to expectations and was underwhelming compared to the other token launches.

They also noted the example of the World Liberty Finance (WLFI) token and the Berachain (BERA) token. These two projects also experienced significant crashes right after their initial airdrops.

What is Linea (LINEA)?

Linea is a newly introduced Ethereum Layer-2 scaling network that provides low-cost and faster transactions by processing them off-chain. It is a fully Ethereum Virtual Machine (EVM) equivalent that allows developers to easily deploy the Ethereum-based dApps and leverage other familiar tools.

The project also aims to secure and scale the vast Ethereum ecosystem by using zx-proof technology, and this could further enhance the network security and instant withdrawals.

Linea’s architecture has a sequencer, prover, and bridge relayer that can work together and handle numerous transactions with speed and security.

The project is developed by Consensys, one of the prominent figures in the sphere, and the company behind MetaMask and Infura. Linea is compatible with MetaMask by default through an Infura RPC endpoint, which will give users a direct connection to the network.

LINEA is the native token of the cryptocurrency project that has various use cases within the ecosystem. However, LINEA is the native token of the Linea Network, and it supports Ethereum as well. LINEA is not a governance token, and it doesn’t have any special significance within the ecosystem, especially among the investors, insiders, or the team.

LINEA is rewarded directly to users and builders for their uncompromised support to help grow the entire ecosystem and project in a community-driven manner.

The recent crash of LINEA is something that the community has already expected, but the fall from the coin, from a strong market performance, is nothing but shocking. Crypto news previously reported that Linea had a total value locked of over $1.69 billion, which was much higher than the year-to-date low of $174 million.

It was also reported that Linea had slowly become one of the top players in the decentralised exchange industry, with its 24-hour volume jumping to over $82 million. Additionally, it was noted that the stablecoin supply had risen by 116% in the last seven days to $295 million.