Charles Hoskinson Backs ADA as Bitcoin’s DeFi Layer: Is Cardano Set to Outperform BTC?


Charles Hoskinson Backs ADA as Bitcoin’s DeFi Layer: Is Cardano Set to Outperform BTC?


Cardano founder Charles Hoskinson has made one of the most ambitious predictions yet for ADA, stating that the token could surge to between $80 and $800.

In a recent interview with Blockworks, Hoskinson proposed that ADA could become the yield-generating layer for Bitcoin’s DeFi ecosystem, opening new doors for utility and investor returns.

Unlike Bitcoin, which is widely regarded as a store of value, Cardano offers real-world functionality. Hoskinson emphasized that ADA holders already benefit from staking rewards and ecosystem token incentives, something Bitcoin lacks in its passive holding model.

“Cardano does substantially more and will end up being the yield layer of Bitcoin DeFi,” he noted, adding that ADA could grow by 100x or even 1000x in the coming years.

ADA vs BTC: A Battle of Performance and Utility

Historically, Cardano (ADA) has had moments of strong performance. In late 2024, it outperformed Bitcoin by 160%. But by mid-2025, the momentum shifted as ADA lagged behind.

That trend began to reverse in June, when ADA gained nearly 30% more than BTC. Still, on a long-term scale since 2021, ADA remains 88% down against Bitcoin.

Market dynamics show mixed sentiment. Short-term metrics like the spot taker CVD reveal increased selling pressure. However, ADA’s realized cap recently climbed from $23.4B to $23.6B, indicating renewed investor confidence despite market turbulence.

Will Integration with Bitcoin’s DeFi Increase Cardano’s Market Appeal?

Hoskinson’s proposal of integrating ADA into Bitcoin’s DeFi ecosystem could drastically reshape Cardano’s trajectory. Bitcoin currently lacks the DeFi infrastructure that platforms like Cardano or Ethereum possess.

If ADA becomes the bridge between Bitcoin and decentralized finance, it could benefit from greater adoption, transaction volume, and long-term demand.

However, success will depend on cross-chain infrastructure, developer support, and regulatory clarity. If executed well, this move could solidify ADA’s place as a high-yield, utility-rich asset, potentially outperforming Bitcoin in functionality and returns.

Cover image from Unsplash, chart from Tradingview



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