Over $74 million have been withdrawn from real estate betting platform Parcl built on Solana, following a token distribution event on April 15. This mass exit was triggered by the snapshot taken during the recent airdrop of Parcl’s native PRCL tokens to eligible participants.
After the announcement, there was a rush among users to withdraw their funds from Parcl, leading to a significant decrease in the total value locked on the platform. According to DeFiLlama’s data, this amount dropped to $112.1 million, which represents a 39.6% decline from its peak of $185.6 million reached in April.
Parcl’s Setback Reflects the Price of Solana
Parcl serves as a decentralized marketplace for buying and selling predictions about real estate price trends in prominent urban areas.
In the course of its token distribution event, Parcl handed out an astounding 80 million PRCL tokens to recipients. With a grand total of 1 billion PRCL tokens in existence, this airdrop accounted for a noteworthy 8% contribution to the overall supply.
Despite an initial rough launch for Parcl’s PRCL token, the price took a significant dip just hours after the airdrop. The token’s value dropped from $0.62 to as low as $0.45. At the time of writing, there has been a slight improvement with the token trading at $0.5258 based on CoinMarketCap information. However, the price decrease of 35.62% within the last 24 hours continues to leave investors concerned and uncertain about the token’s future prospects.
At the same time, Parcl isn’t the only Solana token facing rough waters. Other tokens built on the Solana platform are also being affected by this trend, indicating a larger market downturn.
An illustrative instance is the indigenous W token of the interoperability bridge Wormhole. Launched on April 3, the W token has experienced a decline of more than 54%. This setback occurred despite an airdrop worth $800 million that was distributed to eligible recipients.
Similar to how the W token was introduced on the Solana platform by another NFT marketplace called Tensor on April 3, the native TNSR token followed suit. Regrettably, just like the W token, the value of TNSR has dropped by a significant 52.6%.
In simple terms, all these tokens share an identical factor – Solana. Therefore, it’s reasonable to assume there could be a connection between their conditions and Solana’s. Remember, the price of Solana (SOL) has experienced a significant decline in April. Approximately 30.7% of its value has been lost already.
Tension in the Ecosystem
In recent days, Solana has faced increasing hurdles. Specifically, its network congestion problems have led to a disappointing 75% failure rate for user transactions as of April 5. These technical difficulties, combined with the overall market decline, have left investors within the Solana community feeling uncertain.
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2024-04-17 12:18