On April 30, 2025, the ALPACA token, linked to Alpaca Finance’s DeFi ecosystem, staged a jaw-dropping rally. From a low of $0.065 on April 29, it soared to a peak of $1.375 by the morning of April 30 - a 2015% jump in roughly 21 hours. This wild swing coincided with Bybit’s delisting of the token, an event that often signals a downturn. Instead, ALPACA surged, only to tumble shortly after on other exchanges. Here’s a look at what unfolded over those two days and the factors that might have sparked this chaotic price action.
What might have driven the surge?
While the full picture isn’t clear, several elements could’ve driven this rally:
- Short squeeze: With the delisting approaching, traders shorting ALPACA after its $0.065 low might’ve been caught off guard. As prices ticked up, they scrambled to buy back tokens, pushing the price higher. With estimates suggesting $31M to $53M in liquidations added fuel to the fire.
- Speculations: Bybit’s exit could’ve triggered a rush of buyers betting on last-minute gains. Some speculated that market makers scooped up tokens at the April 29 low, pumping the price and sparking more buying.
- Supply Crunch: Alpaca Finance’s move on April 25 to nix new token issuance - after burning 35 million tokens - left fewer ALPACA in circulation. This tighter supply might’ve magnified the price spike when demand surged.
- Binance's funding rate twist: Binance didn’t just sit back. They tweaked ALPACA futures, making funding rates settle every two hours (later one hour) and dropping as low as -2%. This made shorting pricier, possibly forcing more traders to close positions and buy tokens, which could’ve boosted the price further.
What happened after the surge?
After peaking at $1.375 on April 30, ALPACA’s price quickly reversed course. Within hours of Bybit’s delisting going into effect, the token retraced over 80%, falling back below $0.30 on other major exchanges like Binance and Gate.io. This sharp correction suggested that the rally may have been driven more by short-term speculation and forced liquidations than by long-term investor confidence.
ALPACA funding rate history analysis
The funding rate history of the ALPACA token from April 29 to April 30, 2025, corresponds to its price surge from $0.065 to $1.375. Funding rates in perpetual futures contracts balance the contract price with the spot price, with positive rates indicating longs pay shorts (bullish sentiment) and negative rates indicating shorts pay longs (bearish sentiment).
Funding Rate Data
| Time (UTC) | Funding Rate |
| 2025-04-29 08:00:00 | -3.0000% |
| 2025-04-29 12:00:00 | -3.0000% |
| 2025-04-29 16:00:00 | -3.0000% |
| 2025-04-29 20:00:00 | -1.9727% |
| 2025-04-30 00:00:00 | -1.0853% |
| 2025-04-30 04:00:00 | -0.2998% |
| 2025-04-30 08:00:00 | 1.7154% |
source: Bybit Past Funding Rate
Analysis
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April 29 (Price Low: $0.065): The funding rate started at -3.0000%, reflecting heavy short interest. Shorts paid longs significantly, indicating bearish sentiment, possibly due to the ALPACA delisting news.
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April 29, 20:00:00: The rate rose to -1.9727%, suggesting a slight reduction in short pressure as the price began to move.
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April 30 (Price Rising): The rate continued to increase (-1.0853% at 00:00:00, -0.2998% at 04:00:00), approaching neutral as the price climbed.
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April 30, 08:00:00 (Price High: $1.375): The rate flipped to +1.7154%, showing longs paying shorts, a sign of strong bullish momentum.
Interpretation
The shift from -3.0000% to +1.7154% mirrors the price surge. Early negative rates suggest shorts dominated, but as the price rose - likely due to a short squeeze - the market turned bullish, with longs taking over by April 30. This pattern highlights how funding rates reflect and react to rapid market shifts.
What We Can Learn
ALPACA’s 21-hour journey from $0.065 to $1.375 and back down shows how delistings can ignite chaos in crypto markets. Whether it was a short squeeze, speculative bets, or supply dynamics, the episode highlights the risks of chasing such spikes. With Binance’s delisting slated for May 2, ALPACA’s path remains shaky. New listings or community backing could shift its fate, but for now, traders should tread carefully in these choppy waters.
Alpaca Finance is still running its DeFi platform, and their community’s sticking around. It’ll be interesting to see where ALPACA goes from here, but the Binance exit is a hurdle. Got thoughts on this wild ride or other crypto surges? Drop them in the comments.
