After months of rapid expansion, Linea, an Ethereum Layer-2 scaling network, is experiencing a mild cooldown. According to the latest data from DeFiLlama, the total value locked (TVL) on Linea dropped 4.22% in the past 24 hours, settling around $1.074 billion. This dip follows a steep rally that saw TVL climb from near $300 million earlier in the year to above $1.6 billion by late Q3 2025.

Despite the pullback, Linea remains one of the leading Layer-2 ecosystems by DeFi activity, with strong on-chain fundamentals and steady app engagement.

Source: DefiLlama

TVL Growth and Correction

Linea’s meteoric rise earlier in 2025 was driven by ecosystem expansions, liquidity incentives, and increased developer adoption. Projects across DeFi, NFTs, and gaming migrated or launched on Linea due to its low fees, high transaction throughput, and Ethereum compatibility.

However, the current correction suggests that some liquidity providers are withdrawing funds after the recent spike, likely locking in gains from yield campaigns. Historically, such cooldowns are common following liquidity mining or incentive-driven inflows.

At $1.074 billion TVL, Linea still maintains a strong foothold among Layer-2 networks, surpassing many competitors that struggled to retain liquidity after similar incentive phases.

On-Chain Performance Snapshot

A closer look at the on-chain metrics highlights mixed trends:

• Stablecoin Market Cap: $131.81 million, reflecting healthy liquidity despite short-term outflows.
  
• DEX Volume (24h): $71.11 million, showing moderate activity across decentralized exchanges.
  
• Perpetuals (Perps) Volume: $25.59 million, indicating resilient derivatives trading despite the broader dip.
  
• App Fees (24h): $203,268 with App Revenue at $92,412-both showing consistent network usage.
  
• Inflows (24h): $128,566, suggesting ongoing engagement from smaller liquidity providers.
  

Linea’s Bridged TVL remains steady at $1.065 billion, reinforcing the network’s role as a preferred Ethereum scaling solution.

Linea Token Metrics

The $LINEA token is currently trading at $0.016, with a market cap of $247.89 million and a fully diluted valuation (FDV) of $1.153 billion. While the token’s price remains relatively stable, traders are watching for renewed momentum once broader market confidence improves.

Ecosystem Context and Developer Sentiment

Linea’s ecosystem expansion continues, with new DeFi projects integrating and builders leveraging its low-cost environment. The network’s emphasis on scalability and security, coupled with Ethereum Virtual Machine (EVM) compatibility, continues to attract developers seeking efficient infrastructure.

Although the current market dip has trimmed TVL figures, sentiment within the Linea community remains cautiously optimistic. Developers and liquidity providers appear to be positioning for the next wave of growth, especially as Ethereum Layer-2 adoption accelerates across the board.

Conclusion: Short-Term Dip, Long-Term Potential

Linea’s 4.2% daily decline in TVL marks a temporary slowdown following months of explosive growth. Yet, with over $1 billion still locked and ongoing ecosystem development, the network’s long-term outlook remains strong.

As macro sentiment stabilizes and incentive rounds normalize, Linea’s combination of scalability, liquidity depth, and active developer base could position it as a top-performing Layer-2 ecosystem heading into 2026.

The post Linea DeFi TVL Slips 4.2% to $1.07B as Activity Cools After Explosive Q3 Surge appeared first on FXcrypto News.