Cardano Founder Blames ADA Users for DeFi Woes: “Our TVL Would Be $5-10 Billion Minimum”
**Charles Hoskinson Criticizes ADA Community Over Cardano’s DeFi Struggles**
Charles Hoskinson, the founder of the Cardano network, recently called out the ADA community for their role in the platform’s ongoing decentralized finance (DeFi) challenges. Speaking on his recent podcast, Hoskinson suggested that Cardano users themselves are partly responsible for the ecosystem’s underperformance in DeFi.
According to Hoskinson, the total value locked (TVL) on the Cardano blockchain would reach seven to eight digits if ADA holders actively adopted and used native DeFi platforms available within the network.
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### Cardano’s DeFi Challenges: Community Participation Under Scrutiny
Cardano continues to lag significantly behind its peers in the DeFi space. Despite being a top utility blockchain and ranked 10th by market capitalization with a valuation of $20.6 billion, Cardano’s DeFi TVL remains remarkably low.
As per DeFiLlama, Cardano’s TVL stands at only $262 million, placing it 24th among all blockchains. To put this into perspective, no other cryptocurrency of similar market cap—aside from Dogecoin and XRP, which lack native DeFi capabilities—has a TVL below $5 billion.
Industry experts, including Hoskinson, have previously highlighted various ecosystem challenges as reasons behind this disparity. However, Hoskinson introduced a fresh perspective in his recent remarks: the fundamental issue is that even Cardano’s own users are not engaging with its native DeFi products.
He questioned, *“How can we expect users from Solana, Ethereum, or other chains to ‘come and play in our backyard’ if our own community isn’t actively using our DeFi products?”*
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### Potential Reasons Behind Low DeFi Adoption
Hoskinson emphasized that the Cardano community needs to deliberate on why its native DeFi products are underutilized by ADA holders. He pointed to several possible factors affecting adoption:
– Lack of technical know-how among users
– Security concerns surrounding DeFi platforms
– Poor user experience and interface design
– Lower yields compared to competing ecosystems
Addressing these issues, he insisted, could significantly boost DeFi activity on the Cardano network.
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### Cardano’s TVL Could See Massive Growth
Hoskinson stated that Cardano’s total value locked should realistically be in the range of $5 billion to $10 billion—far above the current figure.
A $10 billion TVL in ADA would represent a staggering 3,716% increase from the current $262 million, potentially propelling Cardano to third place among DeFi blockchains—behind only Ethereum ($84.22 billion) and Solana ($11.17 billion).
This view has found support within the Cardano community. One user highlighted that Cardano possesses sufficient users and capital to develop a thriving DeFi ecosystem independently; however, the lack of active participation from holders remains a key hindrance.
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### Community Efforts and Future Outlook
The conversation around increasing Cardano’s TVL is gaining traction, coinciding with ongoing efforts by the Cardano team to unlock DeFi opportunities for Bitcoin and XRP assets on their platform. These initiatives could be game-changers for Cardano’s place in the DeFi sector.
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**Disclaimer:** This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not necessarily reflect those of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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### About the Author
**Elendu Benedict** is a seasoned cryptocurrency writer with over two years of experience. He possesses extensive knowledge of blockchain technology, cryptocurrencies, market trends, ETFs, DeFi, and Web3. Elendu specializes in crafting engaging and educational articles covering a variety of crypto-related topics.
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For more insightful analysis and updates, stay tuned to The Crypto Basic.
https://thecryptobasic.com/2025/11/03/cardano-founder-blames-ada-users-for-defi-woes-our-tvl-would-be-5-10-billion-minimum/
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