Parcl Investors Withdraw Over $74M Liquidity Following Airdrop | Coinspeaker
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Parcl Investors Withdraw Over $74M Liquidity Following Airdrop

Users went on a withdrawal spree that caused the total value locked (TVL) on Parcl to plummet to $112.1 million.

Mayowa Adebajo By Mayowa Adebajo Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Parcl Investors Withdraw Over $74M Liquidity Following Airdrop
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Solana-based real estate betting platform Parcl has seen investors pull out over $74 million from the protocol. The swift action comes as a result of a recent airdrop snapshot that the platform took on April 15, distributing its native Parcl (PRCL) tokens to eligible users.

Shortly after the announcement, however, users went on a withdrawal spree that caused the total value locked (TVL) on Parcl to plummet to $112.1 million. According to DeFiLlama data, that is a 39.6% decline from its April 2 peak of $185.6 million.

Parcl’s Setback Reflects the Price of Solana

Parcl functions as a decentralized real estate trading platform. The platform allows users to speculate on the price movements of real estate markets in major cities.

During its airdrop campaign, Parcl allocated a staggering 80 million PRCL tokens to participants. Considering that PRCL has a total supply of 1 billion, the airdrop did commit an impressive 8% of that to the exercise.

However, the debut of Parcl’s PRCL token saw a rocky start. Within four hours of the airdrop, prices plunged from $0.62 to as low as $0.45. As of publication, though, PCRL has made a slight recovery and was seen trading at 0.5258, per CoinMarketCap data. Nonetheless, the price is still down 35.62% in the past 24 hours, and the damage to investor sentiment appears to remain.

Meanwhile, Parcl is not alone in experiencing these worst. Other Solana-based tokens are also going through a bumpy ride in what reflects a generally poor market outlook.

A good example is the native W token of the cross-chain bridging platform Wormhole. The W token has plumetted by over 54% since launching on April 3. That is despite an $800 million airdrop to eligible users.

Like the W token, another Solana-based NFT platform Tensor launched its native TNSR token on April 3. However, that has also suffered a 52.6% decline.

Clearly, these tokens have one thing in common – Solana. So, it might be safe to think that there is a correlation between their situation and that of Solana. Recall that the price of Solana (SOL) itself has also recorded a substantial amount of drop in April. It has lost over 30.7% of its value already.

Tension in the Ecosystem

Solana’s challenges have been mounting in recent times. Its persistent network congestion issues, for instance, saw it attain an unwanted record of 75% failure rate for user transactions. That was on April 5. These technical issues, coupled with the broader market downturn, have contributed to a sense of unease among investors within the Solana ecosystem.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.

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