InstaForex

September 30, 2021

China's Strict Action Against Crypto Brings Luck To The DeFi Sector?

 The recent crackdown by the Chinese administration and its decision to declare a crypto transaction as illegal has brought profits to the DeFi crypto market. While the majority of crypto assets were affected by the action however, major DeFi crypto assets have shown price spikes.


Data provider Santiment noted that active addresses have increased significantly over the last five days. Similarly, network growth has shown a significant surge. Interestingly, this happened after China announced the action.


The following is a chart of the number of daily active addresses (DAA) based on what Santiment reported:





Uniswap (UNI) is one of the crypto assets that showed a significant price spike. Turnover on UniSwap increased 500%. Santiment reports that the Uniswap network saw the 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


In addition, dYdX also made a significant jump as Chinese investors turned to the exchange.


Ultimately this crackdown from China has driven the growth of DeFi’s crypto assets in the short term. Cardano, which is planning to expand into the DeFi market, is also making a profit in this regard.