Solana-Based Real Estate Project Parcl Drops 40% of TVL After Airdrop

Solana-based real estate project Parcl has recorded a steady decrease in total value locked (TVL) within the past two weeks. Investors have withdrawn about $74 million from the project within the timeframe. Its native token, PRCL, has also tanked since 80 million tokens were distributed to eligible users.

Parcl is a Solana-based decentralized platform where users predict real estate prices in markets.

Didn’t Go As Expected

On April 3rd, Parcl took a snapshot of its users ahead of its PRCL token airdrop. At that time, the project’s TVL was around $185 million. Following the token’s airdrop yesterday, the TVL had tanked by over 40% to $109 million, as shown in the chart below.

Source: DefiLlama

TVL is a typical way to assess the financial strength of a decentralized project. Higher TVL implies that the project has more funds from users. They also indicate trust in the project. On the other hand, lower TVL shows a reduced interest in the project. The metric also drops when the protocol suffers an exploit from malicious actors.

The PRCL token, on its part, is now traded at $0.49, representing a 21% decrease over the past 24 hours.

Did Solana Congestion Contribute?

Although the Parcl team did not mention the cause of the reduced performance, Solana’s recent congestion issues likely contributed to the decrease in investors’ attention. For the past few weeks, the Solana mainnet has experienced network traffic caused by an overwhelming increase in bot and spam transactions. It became difficult for human users to enjoy the blockchain’s efficiency.

The issue had a ripple effect on several Solana-based projects and SOL’s value. The blockchain’s native cryptocurrency dropped by over 22% in a week to a current trading price of $131.

Notably, Solana developers recently implemented a fix for the congestion issue.