After Banning ICOs China’s Defi Ecosystem Grows Exponential This Year

외신뉴스
2020-10-05 23:00 PM

After Banning ICOs China"s Defi Ecosystem Grows Exponential This Year


The decentralized finance (defi) ecosystem has become a multi-billion dollar industry and quite a bit of the popularity is stemming from China. While a number of defi projects from the West like Uniswap, Compound, and Makerdao are popular in the country, China is also creating its own landscape of defi platforms and applications.


At the time of publication, the recorded total value locked (TVL) in defi is hovering around $10.8 billion. Uniswap captures the market dominance according to the web portal defipulse.com, as the trading protocol commands over 20% of the market.


On October 1, James Gillingham the founder of Finxflo explained how China is developing its own defi ecosystem. Gillingham told Forkast News that he thinks China might be allowing the creation of its own defi space, in order to ultimately curb capital controls. The defi ecosystem in China has grown exponential, after the Chinese government banned initial coin offerings (ICOs) in 2017.


Another report this year that combs through the swelling defi sector in the country notes that “a large number of defi projects have gone viral in China.” Projects that have seen virality in 2020 include Loopring, Kyber Network, Uniswap, Compound, and Makerdao. However, despite these projects seeing lots of attention from China, the country is seeing a lot of its own defi development.


Stats from the Conflux Network show China is also seeing all kinds of defi applications tending to patrons living in the country.Image from the Conflux Network shows China has developed defi wallets, stablecoins, payments, NFTs, derivatives, lending/borrowing applications, and defi exchanges as well.


The Conflux study report notes defi wallets like Bitpie, Debank, Cobo, Mykey are now integrated with Chinese decentralized applications (dapps). Non-fungible tokens (NFTs) are popular collectibles in China with NFTs such as Dappbirds, Hyperdragons, and Fishchain.


“Although the Chinese defi market is still in its infancy, recent waves of adoption, dapps, and capital from the region are slowly capturing a significant market share of the defi ecosystem,” the Conflux report highlights.


Stablecoins are also huge in China and while tether (USDT) dominates in the region, there’s a synthetic USD from Dforce and HUSD. There’s also Bitcny and Qcash as well representing two forms of synthetic CNY. In the borrowing and lending field, there’s platforms like Infinity, Kava Labs, Force Protocol, and Dforce.


Gillingham expects China to continue making “moves with this new decentralized finance approach.” The founder of Finxflo also expects the Chinese government to get involved in the defi ecosystem.


Defi has also seen significant growth since China started discussing approving licensed blockchain firms. In January 2020, over 33,000 companies registered in China with the intent of providing a blockchain service.




What do you think about the growing defi space in China? Let us know in the comments section below.Devere Group CEO Predicts Bitcoin Can Replace Gold as Top Safe-Haven Within a GenerationFINANCE | 6 days agoReport: Market Valuation of 14 Banking Giants Shed $635 Billion This YearFINANCE | Sep 15, 2020Tags in this storyBitcny, Bitpie, China, China Defi, Chinese DeFi Ecosystem, Cobo, Cryptocurrency, Dappbirds, Debank, Defi China, defi wallets, Dforce, Finxflo, Fishchain, Force Protocol, HUSD, Hyperdragons, Infinity, James Gillingham, Kava Labs, Mykey, nft, Qcash, Stablecoins


Image Credits: Shutterstock, Pixabay, Wiki Commons, Conflux NetworkSpot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

외신뉴스
Crypto news


함께 보면 좋은 콘텐츠

All posts
Top