Cardano founder Charles Hoskinson has highlighted a venture that would increase the ADA ecosystem’s TVL and transaction volume.
He told Crypto Banter host Ran Neuner during a session at the Token2049 Singapore conference earlier this month that Bitcoin DeFi is the biggest play to revolutionize the Cardano ecosystem. Hoskinson fronted the trillion-dollar liquidity unlock as the best way to cover lost ground in the decentralized finance (DeFi) sector.
Bitcoin DeFi Key for Cardano
He admitted to Neuner, while settling their long-standing feud, that Cardano had fallen behind chains like Solana in DeFi, despite building a decentralized ecosystem with on-chain governance. Remarkably, he had confirmed this several times, but remains optimistic that Cardano would catch up.
When asked how Cardano plans to do so, he pointed to Bitcoin DeFi as their biggest chance at bridging this gap. He noted that Bitcoin is an over $2 trillion ecosystem, and introducing smart contract features to its holders would have a massive ripple effect on Cardano DeFi.
Moreover, Cardano has an advantage in this pursuit. Bitcoin uses the UTXO accounting model, which is similar to Cardano’s eUTXO. This close borderline means that Cardano smart contracts can be easily compiled and deployed on the Bitcoin network.
XRP DeFi Plans Still On
Meanwhile, he also referenced the XRP ecosystem as a potential source of DeFi generation. Hoskinson noted that over $100 billion in XRP is currently circulating yield-free; hence, Cardano plans to leverage the untapped market.
The Cardano founder stated that if Cardano dabbles in emerging markets, such as real-world asset (RWA) tokenization, and combines it with Bitcoin and XRP DeFi, it could increase its total value locked (TVL) to between $10 billion and $15 billion, while also boosting transaction volumes.
Remarkably, at $15 billion, it will surpass Solana’s current $12.85 billion DeFi TVL if it remains unchanged, but still sits far below Ethereum’s $98 billion.
Recall that Hoskinson has boasted that Bitcoin DeFi would surpass those of Ethereum and Solana, and unlocking it places Cardano at a massive advantage. He has also shared that he would love to see XRP DeFi on Cardano, a push that some analysts believe would take ADA to $20.
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