Cardano

Solana

DeFi

when

TOLY’S DOG

<p>Few projects in the crypto world have gone through as many highs and lows as Cardano. Once seen as a serious rival to Ethereum, the project now faces questions about its future. With its community still loyal but growth slowing down, many are beginning to ask the same question: is Cardano dying, or could it be preparing for a big comeback?</p>
<p>This debate was recently revisited by Matty from the crypto YouTube channel <strong>Altcoin Buzz</strong>, who examined the current state of the network, the ADA price, and the steps being taken by <a href="https://captainaltcoin.com/analyst-predicts-cardano-speed-could-soon-rival-visa-heres-why/" target="_blank" rel="noopener noreferrer nofollow">Cardano’s leadership</a> to bring life back into the ecosystem. His analysis paints a clear picture of both the problems and the potential ahead.</p>
<h2 class="wp-block-heading" id="cardano-users-are-holding-instead-of-using-defi">Cardano Users Are Holding Instead of Using DeFi</h2>
<p>According to Matty, one of the biggest challenges facing Cardano is the low use of its DeFi ecosystem. While there are plenty of ADA holders, most of them are staking or simply holding their tokens rather than engaging with DeFi protocols. In his words, the issue is not that no one uses Cardano, but that Cardano users are not using <a href="https://builtoncardano.com/ecosystem/defi" target="_blank" rel="noopener noreferrer nofollow">Cardano DeFi</a>.</p>
<p>This has created a problem for the network’s total value locked (TVL), which measures how much crypto is actively participating in DeFi activities. As Matty pointed out, Cardano ranks 24th among all DeFi chains, with a TVL of around $240 million. That number is a long way from where it was in January 2025, when it stood near $650 million.</p>
<p>For comparison, Sui currently holds about $1.6 billion in TVL, Solana has roughly $10 billion, and Ethereum dominates the field with more than $80 billion. By those standards, Cardano’s performance looks modest, and that is what fuels the claim that the project might have lost its way.</p>
<h2 class="wp-block-heading" id="charles-hoskinson-defends-cardano-s-direction">Charles Hoskinson Defends Cardano’s Direction</h2>
<p>Cardano founder <strong>Charles Hoskinson</strong> has not been silent in the face of criticism. Responding to questions about the network’s slowing momentum, he emphasized that the issue lies more with user behavior than technology. He argued that the community is heavily focused on staking, which has always been a central part of Cardano’s design.</p>
<p>Currently, about 57% of all ADA in circulation, roughly 21.78 billion tokens, are staked. This represents around $11.5 billion in value at the current <a href="https://captainaltcoin.com/heres-where-cardano-ada-price-is-headed-in-november/" target="_blank" rel="noopener noreferrer nofollow">ADA price</a>. While that shows strong community participation, it also limits liquidity and activity within DeFi apps.</p>
<p>Matty agreed that while these numbers highlight loyalty, they also create a double-edged situation. High staking rates can reflect confidence, but they can also make the ecosystem less dynamic. He added that staking alone does not reflect the kind of on-chain usage that drives growth or attracts liquidity providers and developers.</p>
<h2 class="wp-block-heading" id="tvl-and-on-chain-usage-tell-a-difficult-story">TVL and On-Chain Usage Tell a Difficult Story</h2>
<p>Despite Hoskinson’s explanations, Matty pointed out that the data speaks clearly. Cardano’s on-chain activity is low, with around 19,000 daily active users, and DeFi engagement remains weak. Hoskinson’s argument that staked ADA should count toward TVL does not align with standard DeFi definitions, as TVL typically reflects assets locked in dApps rather than in native staking mechanisms.</p>
<p>By this measure, the numbers show a project struggling to keep pace. The ecosystem has the users, the developers, and the infrastructure, but the on-chain activity is limited. This has made Cardano’s current position hard to defend against critics who describe it as stagnating.</p>
<p>However, Matty noted that Hoskinson is aware of these concerns and appears determined to turn things around.</p>
<h2 class="wp-block-heading" id="plans-to-reignite-cardano-s-growth">Plans to Reignite Cardano’s Growth</h2>
<p>In his recent remarks, Hoskinson outlined several strategies aimed at reviving Cardano’s DeFi and user activity. Two main ideas stand out. The first is <strong>linking Cardano with Bitcoin</strong>, which could open up new liquidity opportunities. The second involves <strong>real-world lending</strong>, using Cardano’s infrastructure to bring traditional financial applications on-chain.</p>
<p>There is also excitement around <a href="https://midnight.network/" target="_blank" rel="noopener noreferrer nofollow"><strong>Midnight</strong>, a privacy-focused sidechain</a> designed to expand the network’s capabilities, and <strong>RealFi</strong>, a microfinance platform focused on African markets. Both projects are expected to bring new users and partnerships into the Cardano ecosystem.</p>
<p>Hoskinson believes that by connecting these initiatives and integrating BTC and ADA into real-world lending systems, Cardano can attract more liquidity and activity. The plan sounds ambitious, and Matty acknowledged that it could take time to see results.</p>
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<h2 class="wp-block-heading" id="the-leios-upgrade-could-change-the-technical-landscape">The Leios Upgrade Could Change the Technical Landscape</h2>
<p>Another major development on the horizon is the <strong>Leios upgrade</strong>, which is expected to introduce a parallel block structure to the network. This upgrade should allow multiple transaction streams to run at the same time, improving speed and scalability.</p>
<p>According to Matty, there has been talk of achieving up to 10,000 transactions per second, although that figure remains theoretical. The upgrade has moved from research to active engineering, but there is still no timeline for its release. Given Cardano’s history of deliberate, careful progress, Matty suggested that Leios might not arrive until sometime in 2026.</p>
<p>He compared Cardano’s pace to that of Rockstar Games, the studio behind Grand Theft Auto, known for only releasing its projects when they are truly ready. This cautious approach has always defined Cardano, though it also means that innovation often arrives slower than competitors like Solana or Avalanche.</p>
<h2 class="wp-block-heading" id="can-cardano-price-recover-from-its-current-levels">Can Cardano Price Recover From Its Current Levels?</h2>
<p>At the time of Matty’s analysis, ADA price hovered around $0.50. That level represents a long fall from its past highs, but some still view it as a potential opportunity for those who believe in Cardano’s long-term vision. Matty stopped short of making predictions, instead focusing on the need for real DeFi activity and stronger user participation.</p>
<p>For Cardano price to move meaningfully, liquidity and on-chain engagement must return. This will depend on whether Hoskinson’s proposed strategies, Bitcoin integration, real-world lending, and the upcoming upgrades, can actually attract sustained activity. Without that, even strong technology might not be enough.</p>
<p><strong><em>Read Also: <a href="https://captainaltcoin.com/heres-why-analysts-believe-xrp-price-could-reach-three-digits-in-the-long-run/" target="_blank" rel="noopener noreferrer nofollow">Here’s Why Analysts Believe XRP Price Could Reach Three Digits in the Long Run</a></em></strong></p>
<p>Matty’s conclusion was clear: Cardano is not dead, but it is in a challenging transitional phase. The network still has a loyal user base, solid development, and a long-term roadmap. The challenge is converting that foundation into real usage that drives the next phase of growth.</p>
<p>Many blockchains have gone through quiet periods before finding renewed life. If Hoskinson can align his community, integrate new technologies, and attract meaningful liquidity, Cardano could still surprise the market again.</p>
<p><em><strong>Subscribe to <a href="https://www.youtube.com/@Captain-Altcoin" target="_blank" rel="noopener noreferrer nofollow">our YouTube channel</a> for daily crypto updates, market insights, and expert analysis.</strong></em></p>
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<p>The post <a href="https://captainaltcoin.com/is-cardano-ada-dying-or-preparing-for-a-huge-comeback/" rel="noopener noreferrer nofollow">Is Cardano (ADA) Dying or Preparing for a Huge Comeback?</a> appeared first on <a href="https://captainaltcoin.com" rel="noopener noreferrer nofollow">CaptainAltcoin</a>.</p>

Is Cardano (ADA) Dying or Preparing for a Huge Comeback?

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