Cardano’s DeFi Gamble: Bitcoin or Bust? (Spoiler: It’s Complicated 😅)

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Key Takeaways

What’s really holding Cardano back in DeFi?

Weak coordination and governance. Hoskinson noted that most of ADA’s 1.3 million active users aren’t yet fueling DeFi liquidity. Classic: build a rocket, but forget to teach people how to push the button 🚀💨.

How does Cardano plan to fix it?

By linking with Bitcoin and real-world lending to draw new liquidity and break its DeFi stagnation loop. Because why not ask Bitcoin to babysit your DeFi dreams? 🤷♂️💸

Cardano’s [ADA] DeFi problem is coordination.

Charles Hoskinson said Cardano’s technology isn’t the issue – its challenge lies in how the community coordinates compared to Ethereum [ETH] or Solana [SOL]. You know you’re in trouble when your community acts like they’re waiting for a bus that left in 2018 🚌😭.

Instead of chasing the usual TVL race, he’s now pushing a different path: linking Cardano with Bitcoin [BTC], and using real-world lending to pull in liquidity. Genius! Now we’re just borrowing problems from other ecosystems. Thanks, Charles! 🙌

Cardano is still far behind in DeFi volume, but the base is there. Now, can it unlock that user base and come back to life? Doubtful. But hey, at least the memes are free. 🐸

What’s Cardano’s real problem?

Hoskinson’s latest comments made one thing clear that the low DeFi numbers don’t reflect the size of Cardano’s actual base. He stressed that Cardano already has over 1.3 million users staking ADA and participating in governance, but most of them don’t engage in DeFi protocols. Like a gym membership: you’re there, but you’re just staring at the elliptical. 🏋️♂️👀

That creates a “chicken and egg” loop where low on-chain activity keeps liquidity and partners away. Because nothing says “invest here” like a blockchain that’s quieter than a library. 📚🤫

As Hoskinson put it,

“It’s not a technology problem. It’s not a node problem. It’s not a problem of imagination and creativity. It’s not a problem of execution. We can pretty much do anything. It’s a problem of governance and coordination and ultimately accountability and responsibility.”

As far as solutions go, he referenced Midnight and RealFi as core pillars, both designed to link ADA with Bitcoin and real-world lending. This would mean capital can flow in from outside crypto. Because why not let traditional finance save crypto? It’s not like they’ve ever failed before. 🤡

Hoskinson added that this could unlock “billions of dollars,” especially once ADA and BTC can be lent, converted into stablecoins, and used inside real credit markets. Let’s just hope the billions don’t evaporate like my Netflix password. 🔐

This is the contradiction Hoskinson was trying to explain: Cardano doesn’t have a demand problem, it has an activation problem. Like a toaster that just stares at your bread. 🍞👀

ADA is on weak momentum

At press time, ADA traded around $0.60 and the trend remained soft. The price stayed under all major EMAs, with the 20 EMA near $0.65, the 50 EMA around $0.71, and the 200 EMA near $0.74. Trading like a used car you bought on a whim. 🚗💨

This showed that sellers still controlled the bigger trend. Classic. The RSI showed momentum was weak and nowhere close to a bullish reversal zone. Moreover, the CMF was slightly below zero again, so capital inflows had not stepped back in yet. Because nothing says “bull market” like a chart that looks like a deflated balloon. 🎈💥

Overall, ADA looked stuck in a slow drift, with no strong sign that buyers were returning. But hey, at least the team’s still tweeting. 🐦

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2025-11-03 07:12