Project Review: What is Alpaca Finance?

Alpaca Finance is one of the earliest leveraged yield aggregator protocols on the BNB Chain, quickly rising to fame during the DeFi boom in 2021 by allowing users to lend funds or use leverage for yield farming. Its native token ALPACA is used for governance, staking, and rewards.

Binance announced delisting: igniting market sentiment

Image:https://www.gate.com/trade/ALPACA_USDT

On April 24, 2025, Binance announced that it would delist ALPACA on May 2 due to declining project activity, compliance and transparency issues, and shrinking trading volume. After the announcement, community confidence quickly collapsed, and market sentiment turned to panic.

Delisting triggered a big dump in price: liquidity plummeted.

Binance’s delisting decision led to ALPACA losing liquidity support for trading pairs on multiple platforms. Within hours of the announcement, the price of ALPACA fell from $0.0329 to $0.029, a decline of nearly 12%. The contract liquidity on platforms like Bitget also significantly decreased, making the price more susceptible to manipulation.

Behind the brief rebound: short squeeze and sentiment trading

After the price hit the bottom, ALPACA experienced an extreme market rebound. Within less than two hours, the price skyrocketed from $0.029 to $0.075, peaking at $0.085. Analysts point out that this round of “violent surge” may be due to excessive short positions, triggering a short squeeze, as well as the dual impetus of retail investor following sentiment.

The project officially announced its shutdown: negative news continues.

The Alpaca official team subsequently announced at the end of May: the project will complete liquidation before June 30 and permanently suspend all product functions. This means that the token will lose functional support, further diminishing its long-term investment value.

The current situation and future risks of ALPACA

Although some trading platforms still retain ALPACA trading pairs, the trading depth and liquidity have rapidly shrunk. Currently (as of July 17), the price stabilizes in the $0.047–$0.050 range, but issues such as insufficient liquidity, price volatility, and deteriorating fundamentals make its investment risk extremely high.

Investor Advice:

• Be cautious when participating in short-term trading and pay attention to volatility traps;
• Avoid long-term holdings, the project’s fundamentals have collapsed;
• If you already have a position, it is recommended to set up a take profit/stop loss mechanism;
• Pay attention to the platform announcements to prevent wallet withdrawal issues or forced liquidation.