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