Alpaca Finance, a widely popular decentralized finance project on the BNB Chain, has decided to shut down after running for four years. The platform was known for allowing users to earn more yield farming by using leverage.
However, over time, Alpaca Finance faced money troubles and changes in the crypto market; a recent move by Binance made things even harder, leading the team to close down the project.
Alpaca Finance argued the decision was very difficult but said it was the best way to protect their users and shut down in a safe, respectful way, following the news ALPACA token saw a sudden decline of 30%.
In its X post dated May 26, 2025, Alpaca Finance said, “After extensive internal deliberation and a thorough evaluation of possible paths forward, we have made the incredibly difficult decision to begin sunsetting Alpaca Finance and all of its products. This choice wasn’t made lightly, but we believe it is the most responsible course of action to safeguard our community and ensure a graceful and secure wind-down.”
Data from CoinMarketCap states that, Alpaca token is currently exchanging hands at $0.1092 with a loss of 46% in a week and is down by 52% in the monthly time frame.
Yield farming in Crypto is facing severe declines
In 2025, yield farming in crypto will still play a big role in the DeFi ecosystem and provide chances for passive income.
There haven’t been any significant drops, rewards have been more cautious than in previous years; stablecoin pools often give annual percentage yields (APYs) between 5% and 20%.
More volatile token pairs can still generate higher returns, but the risks are higher. With decentralized platforms like Raydium and Cetus offering 100% APY on certain pairings and some others paying up to 30% on stablecoins, it demonstrates that yield farming is flourishing this year. The market as a whole has developed, and more competition and reward dilution have resulted in normalized yields.
Volatile pairs can still produce higher returns, but the risks are much higher, and multi-chain solutions and sustainable yield models are becoming more popular as the industry innovates, but obstacles like market instability and regulatory scrutiny still exist.
Crypto market price updates
When writing, the crypto market cap was $3.44 trillion with a loss of 0.47%, and the overall trading volume is $110.16 billion. At the same time, the crypto fear and greed index was at 68, indicating a greed sentiment in the wider market.
Bitcoin is at $109,476 with a surge of 4.18%, and in the monthly time frame, it added 17% to its price. The market cap was $2.17 trillion with a slight loss of 0.38%.
According to data from CoinMarketCap, PancakeSwap, Quant, Virtuals Protocol, Zcash, Four, Lido DAO, Uniswap, and Injective have topped the intraday gainers list.
