Alpaca Finance to Shut Down After Binance Delisting Amid Sustained Losses and Liquidity Issues
Alpaca Finance, a significant DeFi protocol on the BNB Chain, will cease all operations and products by the end of 2025 following its delisting from Binance. The platform, known for leveraged yield farming, has faced consecutive annual losses due to intense DeFi competition, a restrictive fair launch model without venture capital, and a sharp decline in liquidity after the April Binance delisting of its ALPACA token. The delisting led to a short-lived price spike but quickly eroded user access and market activity. As a result, all planned product launches and merger talks were canceled. Alpaca Finance will wind down leveraged farming, automated liquidity pools, and decentralized perpetual contracts, urging users to withdraw assets before the final front-end shutdown on December 31, 2025. With ALPACA now trading over 98% below its all-time high, the closure highlights the ongoing challenges DeFi platforms face in sustaining revenue, maintaining token demand, and adapting to shrinking market opportunities after major exchange delistings.
Bearish
The shutdown of Alpaca Finance following its Binance delisting signals a highly negative development for the ALPACA token. Delisting from a major exchange like Binance severely restricts access and liquidity, directly impacting the price and market activity of the token. The platform’s planned wind-down, coupled with sustained operating losses and the suspension of new products and merger talks, further diminishes ALPACA’s utility and potential for recovery. Historically, such closures lead to sustained price declines and diminished trader interest. In the short term, immediate selling pressure is anticipated as users withdraw assets, while long-term prospects for the token and ecosystem are bleak absent relaunch or compensation plans. This event underlines the vulnerability of DeFi tokens when cut off from major trading venues, leading to a strongly bearish outlook.