Parcl Withdrawals Surge After Airdrop, Solana Airdropped Tokens Continue to Falter

Solana-based real estate betting platform Parcl has experienced significant withdrawals following its airdrop, with a 40% plunge in TVL and a drop in token price. This trend mirrors weak performance by other airdropped tokens on the Solana blockchain, including Wormhole's W and Tensor's TNSR.

Parcl Suffers Sizeable Withdrawals Post-Airdrop, Solana-Based Airdropped Tokens Continue to Struggle

April 19, 2023

Solana-based decentralized real estate trading platform Parcl has experienced significant withdrawals since its airdrop on April 3. Data from DefiLlama reveals that tens of millions of dollars have been pulled from the platform, resulting in a 40% decline in total value locked (TVL).

Launched in 2021, Parcl enables traders to speculate on the price movements of real estate markets worldwide through its city indices. On Monday, the protocol distributed 80 million PRCL tokens to eligible users, initially valued at $0.8255 each.

Post-Airdrop Decline

Following the snapshot, Parcl users commenced withdrawing funds from the protocol, leading to a sharp drop in TVL. As of April 17, TVL had plummeted to $107.99 million, a significant decrease from its peak of $185.6 million on April 2.

PRCL's price also experienced a downturn post-airdrop, declining from its debut price of $0.61 to $0.45 within four hours. According to CoinMarketCap, the token has lost over 20% in the past 24 hours, trading at $0.4962 at the time of writing.

Trend of Weak Performance for Airdropped Tokens

Parcl's poor performance mirrors a growing trend of weak performance among airdropped tokens on the Solana blockchain. Wormhole's W has plunged 56.4% since its launch on April 3, while Tensor's TNSR has lost nearly half its value since its airdrop.

This trend coincides with a broader decline in Solana's price, which has lost 18.58% in the past week and 30% in the past 30 days. Industry observers have expressed concern over congestion issues on the Solana blockchain, which could potentially affect the performance of decentralized applications built on the platform.

Lack of Official Response

Parcl has yet to publicly address the massive withdrawals or the declining performance of PRCL. However, its weak performance is consistent with the ongoing challenges faced by airdropped tokens and the broader market volatility in the cryptocurrency space.