Solana-based betting platform Parcl loses 40% TVL after airdrop

Solana SOL +1.17% -based real estate betting platform Parcl has seen about $74 million move out of the protocol since its airdrop snapshot on April 3, data from DefiLlama showed. This marks a roughly 40% decline in total value locked in about two weeks.

The platform distributed native Parcl (PRCL) tokens to eligible users on Monday after taking a snapshot of users’ point balances earlier this month. Its total value locked stood at $184.5 million on April 3, but has since declined to $110.69 million at the time of publication, according to DefiLlama . 

Following the airdrop of 80 million PRCL tokens at an initial value of $0.8255, its value soon dropped to a low of $0.45 earlier today, according to CoinmarketCap data . It is currently changing hands at $0.5294. Launched in February 2023, the decentralized betting platform allows users to trade on assets reflecting major city housing markets.

Parcl did not immediately respond to The Block’s request for comment.

The mass withdrawal seen at Parcl follows weak performances of other airdropped tokens on Solana, including Wormhole’s W, which has plunged 56.4% since its April 3 debut. NFT platform Tensor’s TNSR token has lost half of its value since its airdrop.

Nonetheless, Solana projects continue to push out airdrop events. Decentralized exchange Drift announced Tuesday that it will launch and airdrop 100 million of its governance token, DRIFT, while another DEX Zeta Markets made a similar announcement last week.

Solana has experienced major congestion in recent weeks, likely caused by spam transactions where bots attempted to prioritize activities over those of regular users. Solana developers have since dispatched updates to resolve the issues. 

The price of Solana dropped 18.8% in the past seven days, according to CoinMarketCap.

The crypto market in general has declined in the past week. GMCI 30 , the index that represents a selection of the top 30 cryptocurrencies, fell 13.79% over the past seven days, with investors remaining wary of risk assets following Iran’s attack on Israel over the weekend.