According to DefiLlama, on September 3, 2025, Linea, a Layer 2 network under ConsenSys, reached a new milestone by surpassing $1 billion in total value locked (TVL) in DeFi. This achievement underscores the rapid growth of the Ethereum ecosystem.
Linea's Achievement: TVL Growth
The total value locked (TVL) in Linea witnessed an over 18% increase within just 24 hours, reaching $1.02 billion. This marks a significant rise from under $500 million at the beginning of 2025, accumulating in less than nine months. It now ranks 12th in blockchain TVL.
Key contributors to this growth include protocols such as Aave, Etherex, and Renzo. Aave accounts for nearly 60% of the network's total TVL with $612 million, making it a central player within the Linea ecosystem.
Ignition Incentive Program
The Ignition incentive program, launched on September 2, 2025, plans to distribute 1 billion LINEA tokens to boost TVL. The program's impact was evident from the start, with an 18% rise in TVL in just one day. Major partners, including Aave and Etherex, play crucial roles in attracting liquidity through well-oriented rewards.
For example, Etherex implements a U-shaped incentive function for rewards, favoring liquidity during market swings, thus enhancing stability.
Competition and Challenges
Despite these achievements, Linea faces strong competition from established networks like Arbitrum and Optimism, which maintain higher TVL and more mature ecosystems. A key challenge for Linea is to enhance user engagement and expand its protocol selection to sustain TVL growth.
Market volatility and possible double counting of assets among protocols may also affect the stability of TVL, potentially overstating actual locked values.
The Ignition incentive program and ecosystem strategy provide Linea with a solid foundation for further expansion. Innovations in technology and flexible incentive strategies may help drive TVL growth and strengthen competitive positioning within the Layer 2 market.
