DeFi searches on WeChat is surging in China, almost doubled from the previous record. However, as users continue to withdraw crypto to engage in yield farming, exchanges quickly lose liquidity.
08 September, 2020 | AtoZ Markets – DeFi has surged in popularity despite a bad global pandemic. But in the crypto industry, 2020 is remembered as the DeFi year. The DeFi ecosystem creates headlines around the world. But this trend is finally growing in China.
DeFi Is Finally Exploding In China
The daily search for “DeFi” on WeChat, a Chinese popular social media platform, has surged nearly 900,000 record levels on September 2, almost doubling the previous 500,000 records. DeFi stands for “Decentralized Finance” and aims to reproduce the traditional financial system with fewer intermediaries. DeFi has exploded in 2020 during the COVID-19 crisis.
Local press also revealed that users were withdrawing crypto from the exchange and transferring to DeFi’s protocol to earn rewards on the Yield Farming protocol. Yield Farming was derived from a new feature where users were rewarded with tokens by providing liquidity to the protocol.
Given the recent enthusiasm for yield farming, DeFi suddenly became the hottest topic in the Chinese crypto industry. Interest in DeFi is growing day by day, attracting traders, miners, and speculators. Chinese journalist Colin Wu reported:
“Many exchanges in China experienced difficulties in withdrawing coins and shutdowns. The Chinese community is launching a “coin withdrawal campaign,” calling to withdraw all USDT and crypto in the exchange and delete their accounts.”
The total amount of cryptocurrency drawn from centralized exchanges was small. However, it shows that Chinese crypto investors have changed their views of centralized exchanges. According to local reports, exchanges are also adding DeFi coins to convince users to keep the funds on the platform.
The DeFi sector seems to have delayed its arrival in China. But it finally started picking up. China has a large audience that brings even more innovation to liquidity, volume, and perhaps the global ecosystem.
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