May 24, 2024
Parcl Witnesses Withdrawals Exceeding $74 Million After Airdrop
Altcoins News

Parcl Witnesses Withdrawals Exceeding $74 Million After Airdrop

Investors have withdrawn over $74 million from the Parcl platform, built on Solana, following its recent airdrop snapshot, impacting liquidity provision. The snapshot, taken earlier in April, prompted users to start pulling their funds from the platform, resulting in a significant decline in Parcl’s total value locked.

Airdrop Snapshot Triggers Withdrawals

Parcl distributed its native PRCL tokens to eligible users on April 15 following the announcement of a snapshot taken on April 3. This move initiated a wave of withdrawals from users who participated in the airdrop campaign. Since then, Parcl’s total value locked has plummeted by 39.6% from its peak of $185.6 million on April 2, according to DefiLlama data.

Source: DefiLlama

Parcl: A Decentralized Real Estate Trading Platform

Parcl operates as a decentralized platform for real estate trading, empowering users to engage in speculative activities based on price fluctuations in major city markets. Participants in the airdrop campaign were allocated 80 million PRCL tokens, constituting 8% of the total 1 billion token supply.

Token Performance and Market Conditions

The PRCL token debuted at $0.62 but experienced a decline to $0.45 within four hours of the airdrop. Currently, it hovers around $0.55, as reported by CoinGecko. In a broader context, Parcl’s token has faced a 12.5% decrease over the past 24 hours amidst a wider market downturn.

Source: CoinGecko

Solana-Based Tokens Face Challenges

The recent performance of Solana-based tokens has been notably turbulent. The native W token of the cross-chain bridging platform, Wormhole, has seen a 54% decline since its launch on April 3, despite an initial distribution of over $800 million to eligible users. Similarly, the native token of the Solana-based NFT platform, Tensor (TNSR), has dropped by 52.6% since its launch on the same day.

Solana Network Issues and Price Decline

Solana-based tokens have been adversely affected by a significant drop in the price of Solana itself, which has fallen by 30.7% over the month. Furthermore, congestion issues within the Solana network reached a peak on April 5, with a record 75% of user transactions failing.

Conclusion 

As Parcl users continue to withdraw funds and Solana-based tokens face challenges, the future trajectory of these platforms remains uncertain amidst ongoing market volatility and network issues.

Image by vecstock on Freepik

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