China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
- Chinese-speaking users rank Ethereum, Arbitrum and BNB chain among the top three protocols.
- Tokens related to DeFi protocols, infrastructure and NFTs have emerged as the hottest category in the China crypto narrative.
- China-based investors and VCs have poured capital in Galxe’s GAL, 1INCH, The Graph’s GRT token, AVAX, DOT and Filecoin, among other protocols.
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
Also read: Lido Finance, Rocket Pool tokens rally as traders stake $180 million in Ethereum within 48 hours
China crypto community favors projects on the Ethereum, Arbitrum and BNB Chain
The China crypto narrative has gathered steam with Hong Kong opening doors to retail crypto trade on Thursday, June 1. Hong Kong’s stance on crypto has put several cryptocurrencies and their blockchains at the center of the narrative, fueling price rallies.
A recent report by Chinese crypto media, TechFlowPost, compiled details of crypto projects and tokens favored by the community. According to a report released on May 29, there are more than 21 million Chinese-speaking users across Asia, and their most-favored projects are related to Ethereum, Arbitrum and BNB Chain ecosystems.
Blockchain protocols popular among Chinese-speaking users
Ethereum, the dominant Layer-1 blockchain protocol, is the most preferred by Chinese investors at 85.4%. Arbitrum, a leading layer-2 scaling solution, is at 68%, while BNB Chain is at 56.2%.
These three protocols host several decentralized applications (dApps), games, infrastructure and NFT projects. Other protocols that gained relevance in the China crypto narrative are Solana, Optimism, Polygon, Avalanche and Cosmos, the data showed.
Moreover, experts behind the TechFlowPost report compiled a list of projects in which China-based Venture Capitalists (VCs) have invested in.
Galxe (GAL), 1inch Network (1INCH), The Graph (GRT), Avalanche (AVAX), Polkadot (DOT) and Filecoin (FIL) are the leading cryptocurrencies in the VCs’ portfolio. These cryptocurrencies are therefore at the center of the China crypto narrative and likely to rally with Hong Kong opening doors to retail crypto trade.
GRT is trading at $0.1327 at the time of writing, gaining 13.6% over the past week as the narrative gained prominence. A similar trend was observed in FIL, whose price rose 12.7% in the past week to reach $4.98 at the time of writing.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
