The Linea token, developed on the Ethereum Layer 2 by ConsenSys, has officially launched after the long-anticipated Token Generation Event (TGE).
Overview of Linea Token Launch
The token opened trading at approximately **$0.024**, resulting in a **fully diluted valuation of $1.7 billion** at launch.
Reasons for FDV Decline
The sharp decline in FDV after the token launch was largely driven by **airdrop activity**. As thousands of early users claimed and sold their free tokens, this created sell pressure, pushing prices down. This is a known situation in the crypto world, where free token distributions can lead to **short-term price volatility**.
Linea's Position Among Ethereum L2
Despite the correction, a **$1.7 billion FDV** positions Linea among the top Ethereum scaling solutions. The network utilizes **zk-rollup technology**, aiming to deliver faster and cheaper transactions while maintaining Ethereum's security.
Thus, Linea retains significant market confidence in its long-term potential, even amidst short-term volatility. Further development and community engagement may help Linea solidify its standing in the Ethereum L2 ecosystem.
