Cryptocurrencies Recover From China-Led Liquidation Last Week As Decentralized Sushi and Uniswap Exchange Tokens Rise 37% | Currency News | Financial and business news
- Cryptocurrencies recovered from Friday’s crisis with decentralized sushi and uniswap exchange tokens leading the way on Monday.
- Ether rose 9%, while DEX uniswap and sushi pieces rose 37% and 29%, respectively.
- China’s previous crackdown “had already been built into the prices,” OANDA’s Jeffrey Halley said.
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The cryptocurrency market gained value on Monday, recovering from Friday’s crisis sparked by China’s ban on trade and mining, while decentralized sushi and uniswap exchange tokens were the main beneficiaries of the rebound.
Last week, China banned all trading and mining activity, as well as banning foreign exchanges from doing business with users on the mainland, sparking a sale that wiped out as much as $ 200 billion in the value of the total crypto market in a single day. at one point.
But on Monday, bitcoin, ether and a host of smaller coins were poised to recoup much of those losses as DEX coins surged.
Uniswap – the largest DEX token by market value – was up 37% earlier in the day, but slashed some of those gains to stand at around $ 24.69, up 12%, as of 6:11 am ET, while the smaller competing sushi grew by 29%. , but rose 5% to $ 11.00, according to Binance data. DEX coins are native to decentralized platforms that allow their users to trade without any intermediary, such as a broker, bank or clearinghouse.
“Ether, Uniswap, and Sushiwap have all increased in the past 24 hours due to China’s ban, creating a narrative that Chinese citizens will be flocking to DeFi solutions,” Marcus told Insider Sotiriou, salesperson at digital asset broker GlobalBlock.
Uniswap and Sushiswap are two of the biggest decentralized exchanges, so it was no surprise that their native tokens were ahead of the pack, he added.
“It may well be that the previously announced crackdowns by China have already been built into the prices, which means the gut reaction quickly fizzled out,” said Jeffrey Halley, senior market analyst at OANDA, a exchange company, in a note to customers on Monday. .
“Over the weekend sessions, bitcoin has shown some resilience and has now recovered the majority of those losses,” said Halley.
China has waged a multi-year campaign against virtual currencies since 2013, when it banned banks from processing bitcoin transactions. In 2017, he also ordered local cryptocurrency exchanges to cease operations, forcing the Chinese to use off-shore exchanges. Earlier this year, Beijing cracked down on financial institutions by refusing them to offer crypto services as well as bitcoin mining.
Now China is going one step further, targeting individuals, not just businesses, and shutting down avenues to bypass previous limits, although Friday’s ban did not ban possession of cryptocurrencies.
Elsewhere in the market, ether, the second-largest cryptocurrency after bitcoin, rose about 5% to $ 3,109.29 on the Kraken exchange, making it one of the top performers among the larger tokens, while bitcoin rose 1.4% to around $ 43,869, according to CoinMarketCap.
GlobalBlocks’ Sotiriou noted that most decentralized financial applications – including some exchanges – are built on the ethereum network, which would explain the outperformance of ether on Monday.