UniSwap’s (UNI) trading volume increased by 500% in total, and the increase in this volume on the exchange was also matched by a 35% increase in UNI tokens. So, is China the reason for this increase in decentralized exchanges?
After the bans from China, there was a record increase in the transaction volume of decentralized exchanges. Right after the dYdX exchange, which we reported on before, UniSwap also achieved a strong transaction volume increase and made its investors happy. But what exactly is the reason for this rise? Does it have anything to do with cryptocurrency transaction bans from China?
UniSwap ($UNI), one of the largest decentralized exchanges (Dex), has seen a more than 35% increase in local token prices in the last 24 hours. With the token’s trading volume increasing by 500%, $UNI managed to rise from its daily low of $17.77 to $25.98. Defi tokens are in a fast double-digit uptrend after recovering from Friday’s corrections.
Chinese journalist Colin Wu has claimed that the recent crackdown by the Chinese government will push domestic crypto traders to Defi, leading to an increase in Metmask wallet volumes and Dex protocols like dYdX. This prediction came shortly after dYdX recorded a higher trading volume than Coinbase.
A large number of Chinese users will flood into the DeFi world, and the number of users of MetaMask and dYdX will greatly increase. All Chinese communities are discussing how to learn defi.
— Wu Blockchain (@WuBlockchain) September 26, 2021
Even with the majority of the crypto market in the consolidation phase, major Defi protocols posted double-digit gains, including Ethereum ($ETH), on which most Defi protocols run. The reason for the increase in Defi volume may not be entirely from China, but banning the centralized exchange will definitely support Defi.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.