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DeFi and DEX volumes soar amid China's crypto ban and ongoing US regulation

Published 09/30/2021, 07:00 PM
Updated 09/30/2021, 08:40 PM

Last week China’s heavy-handed crackdown on crypto trading crypto briefly sent shockwaves across the market as Bitcoin and altcoin prices saw a sharp drop following the announcement, but as is the case with all things crypto-related, the market bounced back as resilient traders found other ways to participate in the market.

Part of China's goal in limiting citizens ability to trade cryptocurrency seems focused on discouraging the use of cryptocurrencies and the growing decentralized finance (DeFi) ecosystem but these maneuvers appear to be having the opposite effect as the token price and protocol activity for projects like Uniswap (UNI) and dYdX have seen an uptick since the crackdown began.

Regional BTC flows. Source: Chainalysis
Uniswap trading volume vs. total revenue. Source: Token Terminal
Total revenue vs. total value locked on dYdX. Source: Token Terminal

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