- Hoskinson envisions Cardano integrating with Bitcoin DeFi through Layer 2 solutions and interoperability.
- ADA showed stronger market resilience, with an RSI of 53, outperforming Bitcoin and other altcoins.
Charles Hoskinson, Cardano [ADA] co-founder, is gaining attention again with his ambitious vision for the network’s future.
He has now focused on Bitcoin’s [BTC] DeFi ecosystem, emphasizing Cardano’s potential role in its development.
Hoskinson highlighted that ongoing partnerships and advancements are positioning ADA to integrate Layer 2 solutions with BTC. This integration could open up new opportunities and innovations in the decentralized finance space.
Cardano’s secret sauce to Bitcoin’s success
In a recent conversation with Scott Melker, he addressed whether Cardano could enhance Bitcoin’s scalability and utility. He said,
“The Edinburgh Decentralization Index says that Cardano is the most decentralized cryptocurrency on the planet. OK, so, you know, the evidence is there. The papers are there. The indexes are there. The growth rates are there.”
He added,
“And by the way, we’re in the reserve. The U.S. government seems to think there’s something valid with with Cardano.”
Hoskinson believes that the growing involvement of large financial institutions in Bitcoin DeFi is inevitable, driven by their fiduciary responsibility to generate yields.
He suggests that once BTC ETFs begin offering DeFi-based returns, shareholder expectations will push for similar opportunities across the market.
Looking ahead, he also envisions a three-year window for institutions to establish a firm presence in Bitcoin and UTXO-based DeFi.
How will Cardano act as a catalyst for Bitcoin?
Cardano plans to integrate Hydra with the Bitcoin Lightning Network to establish a trustless recursive bridge between ecosystems. The Aiken programming language will be optimized for scripting, ensuring seamless interoperability across both networks.
Collaborating with Maestro, Cardano aims to simplify Bitcoin’s integration with UTXO blockchains for improved user experience.
Hoskinson added,
“It’s still early days but we are making methodical progress every step of the way. And what’s nice is Cardano has that ethos that’s interoperable and compatible with Bitcoin.”
What more?
Cardano’s co-founder further asserts that ADA will allow Bitcoin users to participate in DeFi transactions while solely using BTC, eliminating the need for additional tokens.
He believes that a seamless merger between BTC and Cardano’s infrastructure could catapult Cardano’s DeFi ecosystem to a scale far surpassing that of Ethereum [ETH] and Solana [SOL] combined.
He added,
It’s a lot harder for Bitcoin to make that transit. So they kind of meet in the middle and use Cardano as a crossroads for those two things.”
ADA outperforms Bitcoin and leading altcoins
Meanwhile, Bitcoin was trading at $83,190.63 after a 1.47% increase in the past 24 hours, while ADA saw a stronger uptick, rising 3.04% to $0.6734, at press time.
Despite multiple assets displaying an RSI above the neutral level, ADA stood out with its RSI at 53, surpassing not just other altcoins but also BTC.
Source: Santiment
Additionally, Cardano also stands out among top altcoins, maintaining a 96% gain from its pre-election levels.
ADA’s resilience demonstrates its market strength, establishing it as a leading contender despite crypto price fluctuations.
Meanwhile, Bitcoin’s dominance has also surged to 62.40%, marking a four-year high and suggesting a potential altcoin resurgence similar to 2021.
