Chinese demand for DeFi is surging, with local exchanges reportedly struggling under the weight of withdrawals destined for yield farming protocols.
Despite the recent sell-off quickly wiping $2 billion from the total value locked in the decentralized finance (DeFi) sector, Chinese demand for DeFi appears to be growing.
Daily searches for ‘DeFi’ on the popular Chinese social media platform WeChat spiked to a new all-time high on September 2 of nearly 900,000 — nearly doubling the previous record of 500,000.
On September 7, Chinese journalist Colin Wu reported that many local exchanges were suffering from liquidity issues amid wholesale withdrawal from customers looking to cycle funds into DeFi protocols.
Wu posted charts indicating that many Chinese traders who bought the recent drop in the price of Ether (ETH) had quickly moved to transfer their assets to decentralized exchanges (DEX) for yield farming.
He reports that in response many exchanges have suspended withdrawal services, escalating tensions and giving way to the emergence of a popular “coin withdrawal campaign:”
Breaking: On Sep 6th, many exchanges in China experienced difficulties in withdrawing coins and shutdowns.