LINEA Drops 85.60% Amid Significant Fluctuations After Network Disruption and Governance Dispute

On September 26, 2025,

plummeted by 98.56% in just 24 hours, falling to $1.0392. Over the previous week, LINEA had dropped 2412%, but it had surged by 814.17% in the past month and maintained the same increase over the past year.

LINEA, a blockchain platform recognized for its modular design and compatibility with EVM, saw a dramatic price collapse after an unexpected network failure on September 22, 2025. This outage, which persisted for almost six hours, halted essential operations such as smart contract processing and cross-chain transfers. Developers traced the root cause to a misconfigured node synchronization. Although the technical team acted swiftly to restore the network, user confidence waned, leading to a steep drop in both trading volume and asset value.

Following the outage, technical analysis indicated a bearish trend. The RSI dropped below 30, pointing to oversold market conditions, while the 200-day moving average dipped beneath the 50-day average—a bearish crossover that often signals weakening momentum. Experts believe the extended downtime undermined short-term investor trust, especially among retail participants who had joined the market during the previous month’s rally.

Debate over governance intensified on social media and developer forums in the aftermath of the outage, adding to the prevailing uncertainty. Some stakeholders advocated for tighter, more centralized control over node validation, while others favored a shift toward greater decentralization to avoid similar problems. This disagreement has stalled progress on a planned consensus mechanism upgrade for LINEA, with no clear solution as of this report.

Backtesting Hypothesis

The backtesting approach suggested by LINEA’s developers and community seeks to analyze how governance choices might affect price trends by using historical data. This method simulates price behavior under three governance models: complete decentralization, partial decentralization, and centralized oversight. Each model is tested with data from the past year, considering factors like transaction activity, network performance, and node validation speed. Early results indicate that full decentralization could help stabilize prices during disruptions, but may also slow down upgrades and extend outages. The hypothesis has yet to be confirmed and is currently under review by the developer community.