The LINEA token is trading at a $2.7 billion pre-market valuation on Hyperliquid.
Ethereum Layer 2 network Linea is gearing up for its long-awaited token release, but it appears that pre-market traders are bearish on the Consensys-backed blockchain.
Linea announced its upcoming token generation event (TGE) on Sept. 3, with a target launch date of Sept. 10. A pre-market derivative was quickly launched on Hyperliquid and opened at $0.06 per token, implying a $6 billion valuation, but has since fallen to $0.027, or $2.7 billion.
The TGE will feature an airdrop event with 10% of the total supply distributed to early users and builders, with another 75% slated for Linea’s ecosystem fund, which is meant to promote and incentivize growth of the network and its Ethereum-alignment mission.
Since Linea unveiled the 85% allocation to its ecosystem fund, chain metrics have started to pick up, with stablecoin supply hitting an all-time high and native dApps experiencing substantial inflows.
Linea is backed by Consensys, a digital infrastructure firm led by Joe Lubin, an Ethereum co-founder and the chairman of the Ethereum treasury company, Sharplink Gaming. The network aims to maximize value returned to Ethereum by designating 20% of all net transaction fees at Linea’s protocol level to be paid in ETH and subsequently burned.
This buy-and-burn mechanism is one of Linea’s solutions to liquidity fragmentation in the Ethereum ecosystem. In the past, Layer 2s have been accused of cannibalizing economic value from the base layer.
While activity on the chain has picked up, its total value locked (TVL) has struggled throughout all of 2025, falling to as low as $120 million in July from a high of $722 million in July 2024.
However, network TVL has exploded over the last month to a new high of $1.17 billion, led by Aave on Linea, whose TVL increased by 3770% in the last month and nearly doubled in the last week alone after Aave announced it would be a part of the chain’s “Ignition” incentive campaign.
The Ignition campaign will run until Oct. 26, and will distribute 1 billion LINEA tokens, worth $27 million at pre-market prices, to users who deposit USDC, USDT, and wrapped ETH (WETH) on Aave, Etherex, or Euler.
