- SharpLink stakes $170M ETH on Linea network, signaling institutional confidence despite 89% TVL collapse from $1.64B peak.​
- Second-largest public ETH holder with 864,800 ETH ($2.7B treasury), chaired by Consensys founder Joseph Lubin who incubated Linea.​
- Linea faces L2 competition from Optimism/Arbitrum while SharpLink’s move could catalyze adoption and reverse TVL decline trajectory.
In a significant move underscoring institutional faith in Ethereum’s layer-2 ecosystem, publicly traded Ethereum treasury firm SharpLink Gaming has announced the deployment and staking of approximately $170 million worth of ETH on the Linea crypto network. This strategic allocation comes as SharpLink solidifies its position as the second-largest public company holding ETH reserves, boasting around 864,800 ETH—currently valued at nearly $2.7 billion.
Linea Suffers 89% TVL Collapse Post-Token Launch
SharpLink’s decision to stake on Linea is particularly noteworthy given the network’s ties to the firm. Chairman Joseph Lubin, who also serves as the founder and CEO of Consensys, played a pivotal role in incubating Linea. Consensys, a powerhouse in Ethereum development, has been instrumental in advancing layer-2 technologies to address scalability issues on the mainnet. By channeling a portion of its vast ETH holdings into Linea, SharpLink not only diversifies its treasury strategy but also potentially bolsters Linea’s adoption and liquidity.
However, this optimistic step arrives against a backdrop of turbulence for Linea. Since its token launch in September last year, the network’s total value locked (TVL) has experienced a dramatic 89% decline, tumbling from a high of about $1.64 billion to roughly $186 million. This downturn reflects broader challenges in the L2 space, including intense competition from rivals like Optimism, Arbitrum, and Base, as well as fluctuating market sentiment driven by regulatory uncertainties and macroeconomic factors. Critics argue that such TVL drops could signal waning user interest or migration to more established protocols, yet proponents view it as a temporary dip in a maturing ecosystem.
Post-Dencun Ethereum Drives L2 Treasury Strategy
From a web3 perspective, SharpLink’s move exemplifies how traditional finance intersects with decentralized infrastructure. As Ethereum continues its transition toward greater efficiency post-Dencun upgrade, institutional players like SharpLink are betting on L2s to handle high-throughput applications, from DeFi to gaming. This stake could inject much-needed capital into Linea, potentially reversing its TVL trajectory and encouraging other treasuries to follow suit.
Looking ahead, the implications extend beyond SharpLink. With Ethereum’s price hovering around $3,100 amid broader crypto market recovery, such large-scale stakes highlight the growing role of corporate treasuries in stabilizing and expanding the ecosystem. Investors will watch closely to see if this catalyzes a Linea resurgence or if competitive pressures persist. For now, SharpLink’s action reaffirms Ethereum’s enduring appeal as a foundational asset in the evolving digital economy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
