Alpaca Finance (ALPACA) Spikes Over 670% Despite Binance Delisting

Alpaca Finance’s native token, ALPACA, surged more than 670% on April 30, briefly crossing the $1 mark. The unexpected rally came just days before Binance plans to delist the token on May 2.

In contrast to typical market behavior, ALPACA began climbing shortly after Binance issued its delisting notice. Instead of triggering a decline, the April 24 announcement coincided with a sharp upswing that caught the crypto community off guard.

What Caused the Price Spike?

One likely trigger behind the dramatic price action was Binance’s concurrent update to ALPACA’s perpetual futures funding rate. On the same day as the delisting notice, Binance announced it would begin settling the token’s funding rate every two hours, capping it at ±2%.

At the time, the rate was negative, incentivizing many users to open short positions in anticipation of a drop. However, the market moved in the opposite direction.

In response, strong buying pressure began to push the price upward, triggering liquidations of those short positions. This, in turn, fueled additional upward momentum and laid the groundwork for a broader rally.

Moreover, on April 29, Binance raised the funding rate cap to ±4%, allowing for even larger funding fees. This encouraged more short positions, which again backfired as ALPACA’s price surged. Another round of short liquidations followed, adding to the bullish momentum and rewarding early long positions.

According to Coinglass data, ALPACA recorded over $55 million in total liquidations within 24 hours, surpassing even Bitcoin and Ethereum. Of that figure, $45 million came from short liquidations alone, setting a new record for the token.

Claims of Whale Manipulation Surface

The unusual activity has sparked speculation on social media. Some observers suspect that the rally may have been engineered.

X user BullByte described it as “a masterclass in market manipulation.” He suggested that large players may have capitalized on ALPACA’s low liquidity to open long positions and inflate the price. This would have allowed them to profit from the ensuing short liquidations and funding rate swings.

Another user, Budhil Vyas, supported this theory, calling the event a textbook case of “liquidity hunting.” Vyas noted that a prior 80% drop in ALPACA’s price may have been a strategic move to shake out holders and pave the way for the rally. He said there was little sign of organic demand behind the surge.

Meanwhile, as Binance prepares to delist the token, other platforms are stepping in to fill the gap. KCEX announced it would launch ALPACA/USDT trading on April 30 at 08:00 UTC, with deposits already open. This gives users continued access to the asset even as Binance phases it out.

What is Alpaca Finance?

Alpaca Finance is a decentralized finance (DeFi) platform on the Binance Smart Chain, focusing on leveraged yield farming. It operates without venture capital funding, presales, or pre-mined tokens. Users can borrow from liquidity vaults to open leveraged farming positions and optimize returns.

Despite the impending delisting, interest in ALPACA remains high. Gate.io currently leads in ALPACA/USDT trading volume, recording over $201 million in activity within 24 hours. Other exchanges like Bitget and BingX have also reported significant trading volumes.

In total, ALPACA’s trading volume surged to $824.6 million in a single day, an increase of 416.2% from the previous day. Whether driven by speculative plays or strategic positioning, market participants appear to be taking advantage of the token’s volatility ahead of Binance’s May 2 cutoff.