DeFi boom in China caused conflict between crypto farmers and exchanges

The growing popularity of crypto-farming in China has caused problems with the withdrawal of digital assets from exchanges.

The growing interest of the members of the Chinese crypto community in the decentralized finance (DeFi) market and profitable farming has led to problems with the withdrawal of funds from digital asset exchanges.
There has been an increase in interest in the DeFi market among Chinese participants in the crypto community. This is evidenced by a surge to almost 1 million in the number of daily searches.

DeFi search statistics on WeChat

Also, the Chinese media drew attention to the fact that the digital asset exchanges encountered liquidity problems. The changes could be the result of a massive transfer of assets by users to lock them for the needs of DeFi projects.

Chinese journalist Colin Wu noted that investors began to buy Ethereum actively when the cryptocurrency lost its value. As a reminder, most DeFi projects run on the ETH blockchain. After buying a cryptocurrency, according to the journalist, users began to transfer digital assets to decentralized exchanges to make money on profitable farming.

In response to the massive withdrawal of ETH, many digital asset exchanges, according to Colin Wu, have restricted user access to withdraw funds. Such actions of platform representatives became the reason for organizing a campaign, within which members of the Chinese crypto community urged everyone to withdraw cryptocurrency from such resources and delete their accounts.

The calls remind of the Proof Of Keys that digital asset investors run every year. It is organized to make sure that the owners of crypto assets who have transferred their funds for storage to exchanges and other services can access their assets at any time.

It is noteworthy that Chinese users showed interest in the decentralized finance market amid the correction. After a prolonged increase in the volume of funds blocked for DeFi projects, in early September the indicator went down. The maximum was recorded on September 2, at $ 9.51 billion. At the time of writing, the indicator has adjusted to $ 8.11 billion.

The amount of funds locked for the needs of DeFi projects. Data: DeFiPulse

It’s worth reminding that the growing interest of market participants in DeFi, fees on the Ethereum cryptocurrency network have grown significantly. The increase in the cost of operations doesn’t stop investors from activity.

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