Alpaca Finance $ALPACA
Recently experienced a significant price surge, with its value increasing by over 300% in a short period. This dramatic rise has led to heightened trading activity and substantial liquidations in the leveraged yield farming sector.
Key Factors Behind the Surge:
Binance Futures Listing with 75x Leverage: Binance's introduction of ALPACA futures contracts, offering up to 75x leverage, has attracted a surge of speculative trading. This move has significantly increased market volatility and trading volumes for ALPACA.
Deflationary Measures: Alpaca Finance has implemented aggressive buyback and burn strategies, reducing the circulating supply of ALPACA tokens. In a notable instance, the platform burned over 3.3 million ALPACA tokens in a single month, contributing to upward price pressure.
Increased Liquidations: The price surge has led to a spike in liquidations, particularly among leveraged positions. Data indicates that in a 24-hour period, there were approximately $2.9k in total liquidations, with $2.4k from long positions and $487.9 from short positions.
