Linea, an Ethereum Layer 2 network by Consensys, is experiencing a decline in activity following the conclusion of its Voyage promotional campaign. This campaign had initially sparked a surge in on-chain activity, driven by rewards in the form of soulbound “XP” tokens.
Overview of the Voyage Campaign
Launched on November 7, Voyage aimed to incentivize user engagement on Linea. The campaign involved various tasks, and participants earned non-transferable XP tokens. This initiative led to a significant increase in Linea’s transactions per second (TPS), surpassing even Ethereum’s average at one point.
During the campaign, Linea’s throughput peaked at 14.9 TPS, briefly outperforming Ethereum’s 13 TPS. However, post-campaign, the network’s activity has dropped considerably, currently averaging around 5 TPS, a 67% decrease from its peak.
Initial Increase and Subsequent Drop
Linea’s TVL also saw substantial growth, climbing from $78.5 million to a high of $263.4 million. Yet, this figure later retracted to $142 million in a week and is now around $176 million.
Despite the overall TVL downturn, the TVL in Linea-based DeFi protocols has consistently risen, reaching a record high of $59.5 million, up from $26.5M.
Similar Patterns in Layer 2 Campaigns
Linea’s experience mirrors trends seen in other Layer 2 networks, like Base and Scroll. These networks launched similar multi-week campaigns, resulting in temporary spikes in activity and TVL, but eventually saw a decline in on-chain transactions.
Base and Scroll’s Post-Campaign Performance
For example, Base’s OnChain Summer campaign led to an increase in throughput, which later diminished. Scroll, after its Origins NFT campaign, also experienced a high in network activity, followed by a decline, despite sustained growth in TVL.
Linea’s post-campaign dip in activity highlights a common challenge for Layer 2 networks: maintaining user engagement and network activity after initial promotional efforts. While these campaigns are effective in driving short-term interest and TVL, the long-term sustainability of on-chain activity remains a key area for development in Layer 2 networks.
