Cardano has attracted attention again after the current price drop that pushed it below $0.57, with network activity and investor confidence weak. Reports have suggested so co-founder Charles Hoskinson blamed the Cardano community for the blockchain’s DeFi stagnation.
However, Hoskinson has now publicly refuted these claims, calling them a misrepresentation. In a fiery response on social media platform imbalance within the ecosystem.
Hoskinson’s clarification: I never blamed anyone
In a video about X Addressing the controversy, Hoskinson expressed frustration at what he described as “fundamentally unfair” reporting. He stated that headlines blaming Cardano users for the network’s DeFi woes were completely false.
He emphasized that his initial comments were intended to identify a structural problem within the ecosystem. The structural problem is based on the difference between those who deploy ADA and those who engage in decentralized finance, and there is no point in assigning blame.
According to Hoskinson, more than 1.3 million users are actively participating in Cardano staking, while far fewer users are engaging with the blockchain’s DeFi protocols. This disparity, he argued, explains why ADA’s total value is locked (TVL) is modest compared to other networks.
He estimated that if the same level of commitment were reflected on both sides, Cardano’s DeFi TVL could be between $5 billion and $10 billion. Hoskinson pointed out that this observation was not a criticism of the community, but an analytical point about user behavior and ecosystem growth patterns. “There is not a single person in the Cardano ecosystem that I blame for our DeFi situation,” he said.
A closer look at Cardano’s DeFi sector
Hoskinson further explained that the problem is not a lack of community involvement, but the lack of proportional participation between governance and DeFi. According to him, Cardano’s large user base and strong participation prove the health and size of the network, contradicting claims that it only has between 10,000 and 50,000 active users.
The real challenge, he said, is understanding why the majority of participants who deploy their ADA are not also contributing to DeFi liquidity. These challenges can include factors such as slippage, reimbursement, user experience, revenue, and training.
Despite the controversy surrounding the misinterpretation of Hoskinson’s comments, there is still an underlying problem of Cardano’s slow DeFi growth. Data about the chain is still visible those are ADA’s daily active addresses have lost weight more than 32,000 in mid-October to about 24,000 in early November.
According to data from DeFiLlamathe Cardano network currently has the 26th largest TVL, with only about $243.2 million across 60 protocols. At the time of writing, ADA is trading at $0.5417, down 6.2% in the last 24 hours. However, the decline isn’t just limited to Cardano, as the entire crypto market is currently down 4% in the past 24 hours.
Featured image from Adobe Stock, chart from Tradingview.com
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