China Records Huge Growth in the Blockchain Industry for January 2020

China Records Huge Growth in the Blockchain Industry for January 2020

About 713 new blockchain businesses have been registered in China in January 2020 alone, bringing the total number of operational blockchain businesses in the country to 26,088.

Based on a publication on the 26th of January by crypto data company LongHash, a total of 79,555 blockchain businesses have been registered in China, however, 57,254 of all the registered businesses had their licenses withdrawn for one reason or the other.

All through 2009 to 2017, the yearly recorded number of newly established blockchain businesses was stationary, until 2018 where an extraordinary spike in that number was witnessed.

While it is unknown if funding will remain steady for the remainder of the year 2020, if the monthly rate for newly registered blockchain businesses stays the same as January, China would record a whopping 8,556 new blockchain enterprises by the end of 2020.

28% of total blockchain businesses in the country are in the province of Guangdong, which houses Shenzhen and part of Hong Kong. These cities are revered as a stronghold for tech hubs and blockchain innovations in the country.

Overall Financing Still on the Low
LongHash discloses that more than 45% of blockchain businesses in China have less than $721 of registered capital. Additionally, 8% of businesses have between $721 and $1,443, 26% have between $1,443 and $7,209, while 9% have $7,209 and above.

This is a very distressing result from the Chinese blockchain industry and is in tandem with previous findings of joint research by Chinese-based corporations Xinhua and Rhino Data. Their research showed that investments and financing in the blockchain industry in China had dropped more than 40% in 2019 alone.

Efforts to Boost Blockchain Growth
In October 2019, the president of China, Xi Jinping charged citizens to foster the adoption of blockchain technology and boost the growth of the blockchain industry in the country.

After this declaration, blockchain growth in the country more than doubled and has been in an upward trajectory ever since.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.