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, 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.

After Banning ICOs China's Defi Ecosystem Grows Exponential This Year
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…

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