Demand for DeFi appears to be growing in China, although the recent sell-off quickly wiped out the $2 billion total value locked up in the decentralized finance (DeFi) space.
Daily searches for “DeFi” on WeChat, China’s popular social media platform, soared to an all-time high of nearly 900,000 on Sept. 2 — almost double the previous record of 500,000.
On Sept. 7, Chinese journalist Colin Wu reported that many local exchanges are experiencing liquidity problems as customers seeking to circulate funds into DeFi agreements exit all together.
In response, he reports, many exchanges have suspended cash withdrawal services, escalating tensions and making way for a popular “surrender movement”:.
BREAKING: On September 6, a number of exchanges in China experienced difficulty in withdrawing coins and shutdowns. The Chinese community launched a “Refund the Coin Campaign”, calling for all USDT and cryptocurrency withdrawals from exchanges and the deletion of accounts. pic.twitter.com/JwUzRFbqXx
– Colin Wu (Wu Blockchain) (@WuBlockchain) September 7.
Wu speculated that the “crazy” DeFi coin, which is more prevalent on Chinese exchanges, is a defensive measure designed to prevent capital migration to decentralized exchanges.
On September 2, Chinese crypto-journalist “Molly” tweeted that DeFi is finally starting to get attention from local investors, who have pooled their money to set up a “farming fund,” adding that “a lot of people are planning their own projects.”
While WeChat searches hit an all-time high, the total value of assets locked up in the DeFi space fell from $9.5 billion on September 2 to about $7.5 billion on September 6, according to DeFi Pulse. During the same period, the number of searches for ‘DeFi’ on WeChat fell back to 450,000.
As of this writing, the DeFi division holds $8.1 billion.Uniswap is the top-ranked agreement at $1.57 billion, followed by Aave at $1.37 billion and MakerDAO at $1.29 billion.