Alpaca Finance’s 32.77% Drop: Can It Survive Post-Binance Delisting?

Alpaca Finance, once a big player in the DeFi space on the BNB Chain, is shutting down by December 2025. This comes after years of financial struggles, intense competition and the recent delisting of its native ALPACA token from Binance.

Launched in 2021, Alpaca Finance was popular with its leveraged yield farming model and had a significant TVL on the BNB Chain. But the last 4 years have been a disaster. ALPACA token dropped 32.77% to $0.1081 after the shutdown announcement, from its all time high.

In their official blog post, the team admitted to being in the red for over 2 years, despite cutting costs and staff. Multiple acquisition talks fell through as the DeFi market weakened. “This wasn’t an easy decision but we think it’s the responsible thing to do” the team said, and will do a structured community focused wind down.

Reasons for Alpaca’s Shutdown

Alpaca’s shutdown is due to several interconnected issues:

• Revenue Decline: Shrinking margins due to competition.

• Unviable Models: Concentrated liquidity AMMs killed leveraged yield farming.

• Market Pressures: Failed acquisition talks and Binance delisting of ALPACA.

• Token Utility Issues: Reduced ALPACA accessibility killed growth.

The shutdown will affect all products, including automated vaults, AUSD stablecoin and perpetual trading platform Alperp.

What Users Need to Know

Alpaca Finance will do a phased shutdown to protect user assets:

• June-September: Withdrawals for leveraged farming positions and AUSD redemptions.

• October-December: Full deactivation of vaults and platform.

• Action Steps: Withdraw funds, redeem AUSD and check the blog for updates.

ALPACA Price: Bearish With Key Support Levels

Currently at $0.1081, ALPACA has strong resistance at $0.1542 (near the 50 period EMA) and is under pressure from a descending trendline. The recent break below $0.1361 has made the bearish sentiment even stronger, $0.0809 is the immediate support.

• Resistance Levels: $0.1542, $0.1361

• Support Levels: $0.0809, $0.0447

• MACD: Bearish momentum continues with no signs of reversal.

If $0.0809 breaks, we could see a drop to $0.0447. A bounce would require a close above $0.1361 and the trendline.

Alpaca Finance is another example of DeFi’s volatility and we need sustainable models in this crypto space.