Taking advantage of the cryptocurrency market's deleveraging, I have built a position in Linea. The stop-loss point is at the previous low.
As for the logic behind building the position, this Twitter article explains it in a very accessible way:
https://x.com/peach_1340/status/1968952796566466773
I'll provide a brief translation:
1. The airdrop has basically been fully released. Currently, 90% of the token airdrop has been claimed, and market circulation is gradually stabilizing.
2. MetaMask (MM) is about to issue tokens, which is one of the most anticipated token releases. It is expected that holders of Linea have an 80-90% chance of receiving the MM airdrop. In addition, MetaMask (which has 150 million users) has just launched the $mUSD stablecoin, which is initially deployed on $LINEA, and is expected to drive more on-chain activity.
3. The fundamentals are strong. Linea's total value locked (TVL) has rapidly grown to $1.65 billion and is expected to continue rising, especially with the Linea Ignition program extending into November.
4. The deflationary mechanism is about to be activated. The token burn mechanism is about to start (expected at the end of September or early October), which will create ongoing deflationary pressure.
5. Huge capital is about to enter DeFi. Projects like SharpLink have approximately $3.6 billion in ETH treasury funds, which are expected to bridge to Linea DeFi for higher yields.
6. The native yield mechanism is about to go live. Plans are in place to launch the native yield mechanism in Q4 2025, with the revenue generated from network activities flowing directly into DeFi incentives and user rewards.
7. Consensys endorsement. Consensys's direct support makes LINEA the most aligned Layer 2 network for future development.
8. Undervaluation. Compared to other L2s, LINEA's TVL is 3.7 times that of OP, but Linea's FDV is only 55% of OP's.