Alpaca Finance, a leading DeFi protocol on BNB Chain and Fantom, said on May 26, 2025, that it plans to wind down operations in the coming weeks. The project’s team explained that this decision follows Binance’s delisting of the ALPACA token last month.
Alpaca will keep its front-end accessible until December 31, 2025, giving users enough time to withdraw their funds safely. The team described the choice as difficult but necessary to protect its community and ensure an orderly shutdown.
Rise and Fall of Alpaca Finance
Alpaca Finance offered leveraged yield farming strategies, letting users borrow funds to amplify returns on liquidity pool tokens.
At its height, the protocol held more than $1 billion in total value locked and became one of the most popular platforms on BNB Chain. However, it has operated at a loss for over two years, as revenue depended heavily on protocol usage in a market that has since cooled.
The recent Binance delisting of ALPACA dealt a final blow by restricting token liquidity and hampering any new strategic efforts.
$ALPACA’s Price Actions
While Binance did not publicly explain why it removed ALPACA, exchanges typically make such moves after assessing project progress, liquidity, and leadership commitment.
For Alpaca Finance, the delisting not only cut off major trading volume but also left the team unable to deploy remaining funds effectively. In the days following, ALPACA’s price spiked by 550% to short liquidations, even as overall liquidity sharply declined.
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At the time of the announcement, ALPACA was trading at $0.1115, down more than 30% in the past 24 hours. Its market capitalisation stood at $16.91 million, with a 24-hour trading volume up by nearly 200%.
X2Y2 NFT Platform Shuts Down
In related news, X2Y2, a three-year-old NFT trading platform, ended its operations on April 30, 2025. Since its beta launch in February 2022, the platform has built a strong community of digital art enthusiasts.
The team cited changing market conditions and operational challenges as reasons for the shutdown. As of May 2025, users could no longer trade new NFTs on X2Y2, and the site now serves as an archive of past activity.
Roam to Merge with Coinbase
Blockchain browser and search engine Roam announced a merger with Coinbase, which will see Roam’s products discontinued and replaced by Coinbase’s suite of services.
The move aims to streamline the user experience by integrating Roam’s search tools directly into Coinbase’s platform. Existing Roam users will be transitioned to Coinbase over the coming weeks, with detailed migration instructions provided by the Roam team.
Treasure DAO Ends Layer 2 Blockchain
Treasure DAO revealed it will completely shut down its Layer 2 blockchain, Treasure Chain, on May 30, 2025. The network, built to power decentralised gaming and NFT applications, struggled to maintain user adoption amid increasing competition.
Treasure DAO’s leadership said that closing Treasure Chain allows the community to refocus on other initiatives within the ecosystem. Users were urged to move any assets off the chain before the shutdown date.
The string of closures and mergers, led by Alpaca Finance’s wind down, reflects wider challenges in the crypto and DeFi space as projects adjust to a tougher market. While Alpaca provides a lengthy withdrawal window to support its users, other platforms like X2Y2 and Treasure Chain have already ceased operations.
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