Alpaca Finance Users Double as the Protocol Crosses $2 Billion TVL

Binance Smart Chain (BSC) protocol Alpaca Finance has seen tremendous growth in a short amount of time. Let’s dive into some of the contributing factors for this rise.

Alpaca Surges in TVL

Yield farming protocol Alpaca Finance has witnessed extraordinary growth in a 7 day period, with a surge in both users and transactions rocketing the Total Value Locked (TVL) on the platform to beyond $2 billion. According to an analysis by DappRadar on May 4th, the protocol had yet to smash through the $2 billion mark, but when we investigated on May 6th, the protocol had surpassed it.

In the course of one week the number of wallets interacting with the smart contracts more than doubled to over 11,000, while the number of transactions has increased 145% to around 62,000, according to data from DappRadar.

A Huge Success Story

One of the cited reasons for the recent success of Alpaca Finance is the staking APYs on the platform, which range from anywhere between 100% to over 4,000% in some pools. Alpaca is aggressively pursuing market share and liquidity providers with maximal returns.

While the growth of Alpaca Finance has been impressive in its first two months of existence, snapshots of the protocol’s performance on May 3rd and May 6th indicated that the growth rate has slowed this week, despite the fact that TVL broke through the $2 billion mark.

At the start of the week users sat at 11,100 and transactions at 62,420. Volume was at $1.3 billion and the balance was $1.03 billion.

Source 7-day performance on May 3rd

Looking at the same dashboard a few days later we see that users have not increased since the start of the week while transactions are down slightly. Volume is down slightly as well to $1.15 billion while balance has increased to $1.07 billion.

7-day performance on May 6th

The historical activity graph also shows a surge in activity on May 3rd, which has not been sustained. The rise of Alpaca Finance is still noteworthy however. In just a few short months the company has carved out an impressive chunk of the market for itself, and has broken into the top 10 apps on Binance Smart Chain, rising to number 6.

Closing Thoughts

If the company can sustain these growth levels in the long term, the future seems bright for this yield farming protocol. $2 billion TVL is an impressive number, and lends Alpaca users a sense of security that the smart contract is safe. Investors should keep tabs on this project and see if this growth is sustainable. 

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