Alpaca Finance (ALPACA) Pumps 1,600%—Then Crashes: What’s Next?

Alpaca Finance (ALPACA), the native token of a leveraged yield farming platform on BNB Chain and Fantom, recently experienced a jaw-dropping 1,676% price surge, peaking at $1.19 before retracing sharply. Despite a massive token burn and bullish sentiment, the token now faces uncertainty due to Binance’s delisting announcement.

In this post, we’ll break down:
✅ Why ALPACA skyrocketed 1,600%
✅ The impact of Binance’s delisting
✅ Token burn mechanics and supply shock
✅ Price outlook: Can ALPACA recover?

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🚀 ALPACA’s Meteoric Rise (And Sudden Fall)

According to CoinGecko, ALPACA surged from $0.067to$1.19—a 1,676% gain—before retracing to $0.57 (still up 123% in 24 hours). The rally was fueled by:

🔹 Aggressive Token Burns – Alpaca Finance completed its 214th weekly burn, destroying 188,888 ALPACA (~$41,500). Over 34.98M ALPACA (18.61% of supply) has been burned, creating deflationary pressure.

🔹 Market Maker Controversy – The team avoided minting new tokens despite high demand, reinforcing scarcity.

🔹 DeFi Resurgence – Increased activity in leveraged yield farming contributed to the rally.

🔥 Why Did ALPACA Price Explode?

1. Massive Token Burns (Deflationary Pressure)

Alpaca Finance has been aggressively burning ALPACA tokens—its 214th weekly burn destroyed 188,888 ALPACA (~$41,500).

📊 Total Burned So Far: 34.98M ALPACA (18.61% of supply)
This scarcity effect has fueled bullish sentiment.

2. Binance Delisting FUD Overcome

Binance announced ALPACA’s delisting (effective May 2), but traders shrugged it off—ALPACA still trades on MEXC, Gate.io, and Bitunix.

The team reassured users:

“Our Market Maker requested more ALPACA to support high volume, but after community feedback, we decided not to mint it.”

3. DeFi & Meme Coin Mania Spillover

With BNB Chain and Fantom DeFi activity rising, ALPACA benefited from speculative trading.

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⚠️ Why ALPACA Crashed After the Pump

Despite the bullish momentum, ALPACA quickly lost most of its gains due to:

🔻 Binance Delisting (May 2) – The exchange will remove ALPACA spot and perpetual contracts, forcing traders to migrate to MEXC, Gate.io, or Bitunix.

🔻 Profit-Taking – After a 1,090% weekly gain, traders cashed out, causing a 52% hourly drop.

🔻 Liquidation Risks – Binance’s April 30 perpetual contract closure may trigger more volatility.

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📉 ALPACA Price Outlook: Key Levels to Watch

Bearish Scenario (If Selling Pressure Continues)

• Breakdown below $0.50\ast \ast \mathrm{could\; lead\; to}\ast \ast$0.25 (next support).
• A deeper correction may test $0.06\text{–}$0.02 (previous lows).

Bullish Scenario (If Demand Returns)

• Holding $0.50 could signal a rebound.
• A breakout past $1.19\ast \ast \mathrm{may\; target}\ast \ast$1.50+ if DeFi momentum continues.

💡 Key Takeaways for Crypto Traders

1. ALPACA’s pump was driven by burns + DeFi hype—but volatility remains extreme.
2. Binance delisting could hurt liquidity—watch other exchange volumes.
3. If Bitcoin & BNB Chain rally, ALPACA could recover.
4. High-risk, high-reward play—trade cautiously.

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📌 Final Verdict: Should You Buy ALPACA Now?

• Swing traders: Wait for a clear trend reversal above $0.60.
• Long-term holders: Monitor burn rate & DeFi adoption.
• Risk-averse traders: Avoid until post-Binance delisting stability.
• You can also check our DeFi/BSC articles.

What’s your ALPACA price prediction? Drop a comment below! 👇