Crypto Market Rebounds Strongly Despite China Crackdown, Decentralized Exchanges In Demand
Last Friday, September 24, in a further crackdown on the crypto market, Chinese authorities announced all crypto transactions taking place in the country as illegal. The Chinese central bank - People’s Bank of china (PBoC) - all crypto activities like trading services, token issuance, order matching, and crypto derivatives shall be treated as illegal.
The PBoC noted: “Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity. Workers of foreign crypto exchanges will be investigated”.
The crypto markets plunged following this announcement and remained under pressure over the last weekend. However, it looks like the impact of China’s actions is short-lived and investors have decided to look past it.
Earlier today, the cryptocurrency market has registered a sharp bounceback with Bitcoin and a lot of other altcoins trading in the green. After last week’s market volatility, Bitcoin is up 4% and is currently trading at $44,000 levels.
One of the biggest beneficiaries of the China-ban have been Ethereum-based decentralized exchanges (DEX), and other such DEXs in general. The Uniswap decentralized exchange saw its trading volumes skyrocketing to 500% in the last 24 hours.
Besides, in the last 24-hours, Uniswap’s native crypto UNI has jumped more than 35%reaching at the way to $25. As of press time, UNI is trading at $24.16 and a market cap of $12.41 billion.
Similarly, other decentralized exchange dYdZ has witnessed strong trading volumes in the last 24-hours. The daily trading volumes on dYdX have moved past $4.2 billion thereby surpassing giants like Coinbase.
It looks like the demand for DEXs will continue to grow going further with such regulatory crackdown. On the other hand, bans like this will have little impact considering the fact that the investor participation has only increased since regulatory bans started back in 2017.
Investors have been moving to more crypto-friendly locations in the overseas markets. Besides, in some jurisdictions, regulators are also trying to work out a middle way to accommodate crypto in the financial space but without compromising on investor protection measures.