Gate Research Institute: Linea Launches Liquidity Incentive Program | Ethereum Foundation Dumps ETH Again

Crypto Market Overview

• BTC (-0.21% | Current Price 111,095 USDT): After dipping to 107,261 USD, BTC rebounded to 111,398 USD and is currently oscillating around 111,000 USD. Short-term moving averages have formed a golden cross, and the rebound momentum is recovering, but the decline in trading volume indicates limited willingness to chase higher prices. Support is at 107,000–107,500 USD, and resistance is at 112,000–113,000 USD. On September 2, the net inflow of BTC ETF was approximately 332 million USD in a single day, with Fidelity's FBTC contributing 132.7 million USD.
• ETH (-0.50% | Current Price 4,289 USDT): ETH price has retreated from a high of 4,956 USD to 4,063 USD, oscillating recently within the range of 4,280–4,300 USD. The short-term moving average has crossed below MA30, indicating continued bearish pressure. Support level is at 4,280 USD, and resistance level is at 4,360–4,400 USD. On September 2, ETH ETF saw a net outflow of approximately 135.3 million USD in a single day, with Fidelity ETHA experiencing an outflow of 99.2 million USD.
• Altcoins: Most mainstream altcoins have seen slight increases, with Q, SQUID, and GMMT being the most active. Market sentiment is mainly "neutral." The Fear and Greed Index today reports 39, which is in the fear range, indicating that the market remains cautious in the short term.
• Macro: On September 2, the S&P 500 index closed at 6,415.54 points, down 0.7%; the Dow Jones Industrial Average fell by 249.07 points, closing at 45,295.81 points; the Nasdaq Composite dropped by 175.92 points, closing at 21,279.63 points. Gold prices reached a historic high, with the spot gold price at $3,529.01 per ounce, an increase of about 1.5%.

Popular Tokens on Juejin

SQUID Squid Game (+102.54%, Circulating Market Cap 6.8 Million USD)

According to Gate.io market data, the current price of the SQUID token is 0.009001 USDT, having surged 102.54% in the last 24 hours. SQUID initially gained attention in the community due to its narrative related to "Squid Game," but has faced ongoing controversy. Squid Game is a Meme token on the Binance Smart Chain (BSC), inspired by the popular Netflix series of the same name. The token promised to develop a "play-to-earn" game upon its launch, claiming to draw inspiration from the gameplay of the TV series "House of Cards."

The recent price increase has been mainly driven by short-term speculative funds, combined with the hype on social media and the atmosphere of community speculation, which has led to an increase in market buying sentiment. However, due to the insufficient fundamental support for SQUID, the volatility is extremely high, and there is still uncertainty regarding its sustainability.

GMMT Giant Mammoth (+67.16%, circulating market cap 24.7 million USD)

According to Gate's market data, the current price of the GMMT token is 0.009025 USDT, with a 67.16% increase in the last 24 hours. GMMT is a community-driven decentralized project focusing on Web3 applications and ecosystem collaboration, dedicated to providing users with diverse cryptocurrency scenarios.

Recently, the promotion of GMMT in the Southeast Asian market and the establishment of new partnerships have significantly boosted trading activity, with a trading volume exceeding 17.84 million. The market sentiment, combined with regional capital inflows, has become an important driving force behind the rise in GMMT prices.

MERL Merlin Chain (+30.81%, circulating market cap 125 million USD)

According to Gate.io market data, the current price of the MERL token is 0.1588 USDT, having increased by 30.81% in the last 24 hours. Merlin Chain is a Bitcoin Layer 2 network designed to provide more efficient scalability and application scenario support for the BTC ecosystem, offering diversified infrastructure including DeFi, NFTs, and payments.

Recently, MERL has gained market attention due to the launch of its ecological incentive program and the introduction of several leading DApps, while also completing the M-BTC integration with the Sui network, which enhances Bitcoin's cross-chain liquidity. Coupled with the chain abstraction and AI-driven trading optimization brought by the mainnet upgrade, as well as the upcoming BTC staking reward program, it further boosts ecological activity and user participation. Against the backdrop of rising BTC ecological narratives, the potential value of Merlin Chain has been rapidly amplified, driving the price of the MERL token upwards.

Alpha Interpretation

WLFI repurchase and destruction

On-chain data shows that WLFI has burned 47 million WLFI (approximately 11.34 million USD) from the unlocked treasury wallet in the past 6 hours in response to the community governance proposal for buyback and destruction. Previously, within two days of the trading launch, WLFI also repurchased 6.498 million WLFI using 2 million USD1 at an average price of 0.308 USD through on-chain operations, further reducing the total circulating supply of tokens.

The repurchase and destruction measures of WLFI indicate that the project team is actively managing the token supply, which may boost market confidence in the short term while bringing favorable expectations of reduced circulation to token holders.

Linea Launches Liquidity Incentive Program

Linea officially announced the launch of the Linea Ignition liquidity incentive program, with a total amount of 1 billion LINEA, aiming to attract an additional 1 billion USD in TVL. The program will last until October 26, 2025. The first batch of qualifying cooperative agreements includes Etherex, Aave, and Euler, with Turtle Club to be added later. The incentive distribution rules are as follows: 40% will be unlocked in one lump sum on October 27, and the remaining 60% will be released linearly over 45 days.

In addition, the Linea Association has approved the allocation of 4% of LINEA to liquidity providers participating in Linea Surge. The specific operation for exchanging SBT for LINEA will be announced through the eligibility check page.

The plan helps to increase the TVL and liquidity activity of the Linea protocol, which is a significant benefit for early participants in the ecosystem, and may also drive short-term market attention and trading activity for the tokens.

Ethereum Foundation once again sells ETH

On-chain monitoring shows that the Ethereum Foundation has transferred 10,000 ETH (approximately $42.7 million) to an exchange, planning to sell it in the coming weeks to support research and development and donation activities. Notably, the last sale by the foundation was also 10,000 ETH, completed through OTC to SharpLink, with a transaction price of about $2,572 per coin, totaling $25.73 million. This transfer occurred just 10 minutes before the official announcement was made.

The Ethereum Foundation's selling actions may temporarily increase market supply pressure, posing a certain risk of volatility for ETH prices. However, considering that the funds from the sales are mainly used for ecological development and research, such operations are part of strategic capital allocation, and their impact on long-term market confidence is limited.

Gate Launchpool

IPO details

• Subscription Project: Moonchain
• Token Name: MCH
• Subscription time: Until September 13, 2025, 20:00 (UTC+8)
• Participation method: Stake ETH or MCH to receive for free
• Total airdrop amount: 1,200,000 MCH

Project Introduction

Moonchain (MCH) is an AI value layer aimed at data and zero-knowledge proof applications, supported by a unique initial hardware issuance (IHO). Through global device deployment, Moonchain can transform real-world data into on-chain trusted and monetizable AI insights.

The project is invested by CITIC Group, UOB, and JDI Ventures, and is committed to building hardware-driven AI + Web3 infrastructure, expanding the data monetization ecosystem globally. MCH is positioned as the backbone of AI + Web3, providing users and developers with trusted data, intelligent analysis, and on-chain value conversion opportunities.
Reference Material:

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH_USDT
• Farside Investors, https://farside.co.uk/eth/
• Gate, https://www.gate.com/trade/GT_USDT
• Coingecko, https://www.coingecko.com/en/cryptocurrency-heatmap
• X, https://x.com/EmberCN/status/1963032806357139556
• Arkham, https://intel.arkm.com/explorer/tx/0x24ffbb29f4ac8bc8a88887396f83f6f91154f11912e8e095f3ceb6c462456309
• Linea, https://linea.build/hub/events/linea-ignition
• X, https://x.com/LineaAssoc/status/1962992974733967570
• Arkham, https://intel.arkm.com/explorer/tx/0x7baebf33f47c96da9fd7617c4f6d09487a47f1881bdee161e62a56ad4943d61e
• Gate, https://www.gate.com/launchpool/MCH?pid=372

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