The Key Takeaways
Why is Cardano so slow in DeFi?
Lack of coordination and governance. Hoskinson stated that ADA users who make up the 1.3 million active accounts are not currently fueling DeFi’s liquidity.
Cardano plans to correct the problem.
Linking Bitcoin with real-world loans to attract new liquidity, and breaking the DeFi loop.
Cardano’s [ADA] The problem with DeFi is that it’s coordination.
Charles Hoskinson said Cardano’s technology isn’t the issue — its challenge lies in how the community coThe following are some examples of how to usedinates compared to Ethereum [ETH] or Solana [SOL].
In order to avoid the TVL race, Cardano is now being linked with Bitcoin [BTC], Real-world lending is a way to attract liquidity.
Cardano is still far behind In DeFi, the base still exists. It’s time to see if it can unlock the user base.
What is the real Cardano problem?
Hoskinson’s latest comments The low DeFi numbers do not reflect Cardano’s real base. Cardano has over 1.3 millions users who stake ADA, participate in governance and are active in the Cardano community. However, most do not use DeFi protocol.
Source: IOHK_Charles/X
It is a stumbling block to achieving a goal. “chicken and egg” Low on-chain activity is a loop that keeps both partners and liquid funds away.
Hoskinson, as he 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.”
He cited Midnight and RealFi, as the two main pillars of his solutions, which are both designed to connect ADA and Bitcoin with real-world lending. It would allow capital to flow from sources outside of crypto.
Hoskinson also added that it could unblock “billions of dollars,”Especially once ADA or BTC can also be lent and converted to stablecoins and used within real credit markets.
Cardano may dwarf TVL, but it is still growing
Source: DeFiLlama
Cardano DeFi TVL, at press time, was sitting on just $271 millions, way behind Ethereum’s 85.5 billion dollars and Solana’s $11.29 trillion. On paper, ADA was far behind.
Santiment’s data shows that Cardano Development Activity Index surpassed ETH and SOL by late October. This is a clear indication of the builder movement.
Santiment
Hoskinson tried to clarify this contradiction: Cardano has an activation, not a demand issue.
The ADA has a weak momentum
At the time of publication, ADA was trading around $0.60. The trend remained weak. The price stayed below the major EMAs. With the 20 EMA at $0.65, 50 EMA at $0.71, 200 EMA close to $0.74, it stayed near all of the major EMAs.
TradingView
It was clear that the sellers were still in control of this trend.
The RSI indicated that momentum was low and not close to a zone of bullish reversal. The CMF is also slightly below zero, indicating that capital has not yet returned.
Overall, ADA seemed to be in a slow-motion rut, without any strong signs that customers were returning.
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Source: ambcrypto.com
