The recent crackdown by China and its decision to declare crypto transactions illegal has proved to be a boon for decentralized exchanges and the DeFi space. While a majority of the crypto market has been under selling pressure, these DeFi blue chips have seen a major boost in on-chain activity.
Data provider Santiment notes that the active addresses have shot up significantly over the last five days. Similarly, the network growth has shown a significant spike. Interestingly, all this has been coinciding with the start of the crypto market crash post the China ban.
However, this scenario is more prominent among the blue-chip DeFi coins. Below is a chart of the total daily active addresses (DAA) among DeFi coins.
From the chart, it is clear that Uniswap (UNI) has been leading the recent spike. As Coingape reported, the trading volumes on UniSwap spiked by a staggering 500%. Similarly, other DeFi players like dYdX saw its transactions volumes surging past that of Coinbase. This happened as a lot of Chinese investors moved to decentralized exchanges (DEXs) following the ban.
As a result, despite the market correction cryptocurrencies like UNI remained resilient. Santiment reports that the Uniswap network witnessed its highest network activity in nearly 5 months.
#Uniswap is one of the few #crypto assets in the green over the past 24 hours, and the push was foreshadowed by its largest address activity spike in nearly five months. If addresses stay high, look for the project to continue staying decoupled. https://t.co/Mi9FNLHlZ2 pic.twitter.com/AxQWqdXq4d
— Santiment (@santimentfeed) September 28, 2021
Impressive Network Growth
Well, along with the address activity, these DeFi platforms have registered impressive network growth. Here’s the network growth for the top-15 ERC-20 DeFi tokens. Here’s an interesting chart from Santiment.
Besides, it turns out that Uniswap has been leading among other DeFi tokens when it comes to DeFi network growth.
Interestingly, everything has been coinciding with the recent China FUD. The china crackdown could further propel the growth in the DeFi coins in the near term. Furthermore, players like Cardano have been seeing major improvements with the introduction of smart contracts. thus, Cardano seems to be all set for the DeFi revolution and market expansion.
The post Is The China FUD Going to Be A Boon for DeFi? Data Says So appeared first on Coingape.