Cardano News Today: Cardano’s DeFi Challenges: Lack of User Engagement and Issues in Governance
- Cardano founder Charles Hoskinson blames user apathy for DeFi stagnation, citing low TVL ($262M) compared to Solana ($11.17B) and Ethereum ($84.22B). - He emphasizes governance/coordination gaps over technical flaws, noting 1. 3M stakers hold $15B but lack liquidity participation despite stablecoin availability. - Cardano's roadmap prioritizes Bitcoin interoperability and real-world finance via projects like Midnight and RealFi to unlock ADA/BTC liquidity. - Market skepticism persists as ADA drops 6.2% a
Cardano (ADA), once considered a strong competitor to
Hoskinson described the situation as a “chicken-and-egg” dilemma: minimal DeFi activity discourages new partnerships and liquidity, while limited external connections slow down on-chain growth, a point he reiterated in his Yahoo Finance interview. He rejected the idea that simply adding major stablecoins like
Hoskinson’s remarks have ignited discussion. Some community members believe that ADA holders lack sufficient motivation—such as attractive returns, user-friendly platforms, or strong security—to participate in DeFi, as reported by TheCryptoBasic. Others argue that Cardano’s robust governance, reflected in its 1.3 million active stakers, is a sign of a thriving network, according to a
To tackle these issues, Cardano is following a long-term strategy focused on
The need for change is highlighted by falling on-chain activity. According to Bitcoinist, ADA’s daily active addresses dropped from over 32,000 in mid-October to 24,000 in early November, while the token’s price slipped below $0.57 amid a broader crypto downturn. Hoskinson clarified his previous statements, emphasizing that he was not “blaming the community” but rather pointing out a lack of participation. “I’m not holding any individual in the Cardano ecosystem responsible,” he stated.
Market experts remain cautious. With ADA currently trading at $0.5417—a 6.2% decrease in the past day—and the overall crypto market down 4%, Cardano faces mounting pressure to achieve concrete progress. Hoskinson’s plan relies on activating passive ADA holders through focused outreach and accountability, but as BeInCrypto has reported, the journey toward revitalizing Cardano’s DeFi sector is still filled with obstacles.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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