In the last 24 hours, the price of the Alpaca Finance (ALPACA) token rose by up to 305%, reaching $1.08 USD according to data from CoinMarketCap.
Over the last 7 days, ALPACA has experienced an increase of 309%, with a market capitalization reaching $165 million USD and a daily trading volume of around $1 billion USD.
What happened? Why did the price of the Alpaca token skyrocket like this? Let's break down the factors involved.
Factors Driving the Price Rise of ALPACA
#1: Consistent Buyback & Burn Program: Alpaca Finance regularly conducts buybacks and burns of ALPACA tokens. To date, over 34.42 million tokens have been burned, reducing supply and increasing token value.
#2: High APY on Alperp Platform: The Alperp platform offers a high Annual Percentage Yield (APY), reaching up to 261% for liquidity providers in assets such as USDT, USDC, BNB, BTC, and ETH. This attracts more users to participate and increases demand for ALPACA tokens.
#3: Integration of Gaming Elements: Alpaca Finance has integrated gaming elements into its ecosystem, including the launch of exclusive games for certain NFT holders. This expands the user base and adds utility to ALPACA tokens.
#4: Launch of New Products: The launch of Automated Treasury V3 and other new features boosts investor confidence and attracts the attention of the DeFi community.
Is this the highest price of ALPACA?
If you think this is the highest price of the ALPACA token, you are certainly mistaken; this token was born in 2021, with an initial price of $8.57 USD.
However, just about a week after its launch, ALPACA experienced a significant price drop to around $0.6 USD.
This means that a week after the token was born, its price had plummeted by about -92%, which certainly leads to the conclusion that this token has experienced a Rug Pull.
Although the price of ALPACA briefly rose to $2.8 USD in 2 months (May 2021), the token remained around $0.2 USD until it finally broke above $1 USD today.
Conclusion
Price increase $ALPACA driven by a combination of deflationary strategies through buyback & burn programs, high APY offerings, integration of gaming elements, and the launch of new products.
Although the current price is still far from its historical peak, this positive development shows potential for further growth.