Withdrawal Wave Hits Solana's Parcl Post-Airdrop

Investors withdraw $74 million from Parcl

Investors have extracted over $74 million from the Parcl platform, a Solana-based venture for betting on real estate markets, subsequent to its airdrop event earlier in April. This move reflects a significant decline in user confidence after the airdrop of PRCL tokens, which were distributed to eligible participants on April 15, following a snapshot on April 3.

Starting just after the snapshot, Parcl's total value locked plummeted by 39.6% to $112.1 million, down from its peak of $185.6 million on April 2, according to DefiLlama.

Source Image: DefiLlama

Market fluctuations impact token stability

Parcl allows users to forecast real estate market trends in major cities. Those partaking in the airdrop received a portion of the 80 million PRCL tokens, representing 8% of the total one billion tokens.

Post-airdrop, the price of PRCL tokens initially dropped from $0.62 to $0.45 and has somewhat recovered to approximately $0.55, as reported by CoinGecko.

Solana network's broader troubles

This downturn is part of a larger market slide that includes Bitcoin, which has decreased by over 7% this week. Tokens newly released on the Solana network, including Wormhole’s W token and Tensor’s TNSR token, have faced significant losses, dropping 54% and 52.6% respectively since their launches on April 3.

The Solana network itself has depreciated by 30.7% this month, further troubled by congestion issues that led to a 75% transaction failure rate on April 5.