UNI And SUSHI Up 37% And 28% Respectively As Focus Moves To DEX
China’s latest ban on crypto might actually be a blessing in disguise for decentralized exchanges (DEX) that facilitate direct peer-to-peer transactions without an intermediary.
Native tokens of major decentralized exchanges like Uniswap and SushiSwap have gained 37% and 28%, respectively, in the past 24 hours, leading bitcoin higher by a significant margin, while centralized exchanges’ tokens are showing red.
Denis Vinokourov, head of research at Synergia Capital, commented:
“The great rotation into everything decentralized is upon us and all thanks to the latest and undoubtedly most aggressive crypto ban by China.
Decentralized autonomous organization Maker’s DAI stablecoin will likely gain substantial market share versus Tether as a result.”
Vinokourov shared a bullish outlook on underlying layer 1 and 2 solutions supporting decentralized finance and non-fungible tokens, especially marketplaces.
On Friday, the People’s Bank of China (PBOC) announced all virtual currency-related activities illegal, banning offshore exchanges from serving mainland Chinese users. The statement also disqualified tether, the largest stablecoin globally, as legal tender along with bitcoin and ether, marking toughest crackdown to date.
Huobi has already taken steps to comply with new regulations, suspending new user signups from China. Reportedly Binance has taken similar actions.
Huobi said early today that it would gradually close accounts of existing China-based users by the end of the year. The Huobi token has dropped 14% in the past 24 hours and 48% in a week, and is currently trading at $7.33. The cryptocurrency hit eight-month lows near $6 earlier today.
