ALPACA Skyrockets By 1,300% Before Crashing

Changing Funding Rates

The short-lived rally began after Binance announced on April 24th that it would delist spot trading pairs for four tokens, including ALPACA, on May 2nd.

Source: X (@AlpacaFinance)

The same day, Binance also changed the funding rate settlement frequency for ALPACA Perpetual Contracts from every four hours to every two hours.

This shift sparked renewed bullish sentiment. Short sellers rushed to close positions while long traders opened new ones, fueling a rapid price climb.

Over $55M Liquidation Volume

On April 25th, Alpaca Finance announced it had cancelled a planned token issuance for a market maker due to the Binance delisting. This added to the market’s volatility as traders reacted to the news.

In just 24 hours, ALPACA’s liquidation volume exceeded $55 million, with $45 million coming from short positions, surpassing both Bitcoin (BTC) and Ethereum (ETH) in liquidation volume.