More than 700 new blockchain firms have been created in China since the start of the year, making it a bullish start for China’s progress in the blockchain race. At the time of writing, there are a total of 26,089 companies in the Chinese blockchain industry, which started in 2009.

The data derives from the cryptocurrency data company LongHash who released a new report on Jan 26. The report shows that the historical all-time high of such firms amounts to 79,556 in China. However, around 57,257 Chinese blockchain companies have lost their licenses or legal status.

Taking a look at their yearly graph which starts in 2009, the number of newly created averaged between 3,000 and 6,000 on an annual basis. However, the situation changed in 2018 as the year met with a significant surge in newly created blockchain companies. More than 18,000 blockchain firms were created at the time, after which the number slumped the following year.

Number of blockchain companies created in China annually

If January’s count of more than 700 new blockchain firms continues for the rest of the year, 2020 in China could see around 8,568 newly created companies in the blockchain industry. However, last year’s speech regarding blockchain adoption might boost those numbers as the industry also expects the digital yuan to be launched this year.

Distribution of blockchain firms per province

According to the regional distribution of blockchain firms from LongHash, the province of Guangdong accounts for 28.5% of all firms. Given that Shenzhen is located in the province and that it borders with Hong Kong, it is only normal that the country’s tech hub hosts most of the firms.

Infrastructure project to help new blockchain firms

As CryptoPythia reported at the start of January, China launched an ambitious blockchain infrastructure project called the Blockchain-based Service Network (BSN). The project’s testing began near the end of 2019 and is expected to fully launch in April this year.

BSN is characterized as one of the most ambitious blockchain projects in the world and is backed by China’s government policy think tank organization the State Information Center (SIC).

The project represents an interregional infrastructure network that will diminish costs and reduce technical problems for blockchain adoption. With the help of BSN, entrepreneurs will have the help and motivation to create new companies in the blockchain industry.

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