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

Solana SOL

-0.035%
Real estate-based betting platform Parcl has seen around $74 million disappear from the protocol since its April 3 airdrop snapshot, DefiLlama data shows. This represents a drop of approximately 40% in the total value captured in approximately two weeks.

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

After the airdrop of 80 million PRCL tokens with an initial value of $0.8255, the value quickly fell to a low of $0.45 earlier today, according to CoinMarketCap facts. It is currently changing hands for $0.5294. Launched in February 2023, the decentralized gambling platform allows users to trade assets that mirror the housing markets of major cities.

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

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

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

Solana has likely experienced major traffic congestion in recent weeks caused by spam transactions where bots tried to prioritize activities over those of regular users. Solana developers have since sent out updates to fix the issues.

According to CoinMarketCap, Solana’s price has fallen 18.8% over the past seven days.

The crypto market in general has fallen over the past week. GMCI 30the index representing a selection of the top 30 cryptocurrencies fell 13.79% over the past seven days, with investors remaining wary of risky assets after Iranian attack on Israel during the weekend.