All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- China’s recent crackdown pushes investors to decentralized exchanges (DEX), with Ethereum benefitting the most.
- Uniswap transaction volumes shoot 500%, dYdX transaction volumes up by 200%.
It has been a fantastic beginning to the week as the crypto market has rebounded strongly putting aside the fears of China’s ban on crypto transactions. As of press time, the overall cryptocurrency market is up 5.58%, adding nearly $200 billion to the overall crypto space.
The world’s second-largest cryptocurrency Ethereum (ETH) has been leading this current bounceback with 12% gains. As of press time, ETH is trading 10.24% up at a price of $3,113 and a market cap of $370 billion. Bitcoin (BTC) has made modest gains at 4.5% and is currently trading at $44,086, with a market cap of $832 billion.
The Ethereum price rally comes against the backdrop of the recent China ban. The ban forced several centralized exchanges (CEX) to discontinue their operations. Popular exchange Huobi immediately announced that it will be suspending its derivatives trading services for Chinese customers.
As a result, a large number of Chinese investors are moving to decentralized exchanges (DEX). Since Ethereum hosts a large number of DEXs, it’s one of the early beneficiaries of the ban. Also, the China ban has pushed leading DeFi projects to take the charge.
The market has soared in the last hour. ETH rose 9% and returned to $3,000. The actions of China's CEX exchange triggered leading DeFi projects to lead the rise. pic.twitter.com/SFNqCOoyjF
— Wu Blockchain (@WuBlockchain) September 26, 2021
Apart from just Ethereum, other top ten altcoins have also gained anywhere between 4-10%. One of the upcoming DeFi projects Avalanche (AVAX) is also up 5% and is currently trading at $69.24.
The Rising Demand for Decentralized Exchanges (DEX)
As said, the China ban has spurred strong demand for decentralized exchanges. As of press time, UniSwap’s native crypto UNI is up 35% and is trading at $24.43 with a market cap of $14.9 billion. Also, as per the data by CoinMarketCap, the 24-hour trading volume on Uniswap is up by a staggering 500% in the last 24-hours.
Last Saturday, September 26, Chinese journalist Colin Wu already made the prediction for the same. He wrote:
A large number of Chinese users will flood into the DeFi world, and the number of users of MetaMask and dYdX will greatly increase. All Chinese communities are discussing how to learn DeFi.
The recent scenario isn’t just limited to Uniswap. As it turns out, another decentralized exchange (DEX) dYdX has seen its transaction volumes skyrocketing in the last 24 hours. Interestingly, it turns out that the transaction volume on dYdX has surged past that of the leading crypto exchange Coinbase.
According to CoinMarketCap data, the dYdX transaction volume in the past 24 hours has reached 4.28 billion, surpassing Coinbase's 3.79 billion for the first time. pic.twitter.com/PR7PX6UbbF
— Wu Blockchain (@WuBlockchain) September 27, 2021
The native cryptocurrency of the exchange DYDX is also up by 35% and is currently trading at $20.21. Today’s crypto market bounceback shows that the market might have a knee-jerk reaction to the China ban, it will continue to remain optimistic in the long term. Ulrik K. Lykke, executive director at ARK36, a cryptocurrency hedge fund, told Benzinga:
Each time this happens [China bans cryptocurrencies], the markets react with a price drop, each time the effect is smaller and more short-lived. The ‘China bans bitcoin’ story has gained almost a meme-like status in the bitcoin community because of this.
