Hoskinson proposes reallocation of ADA to Bitcoin and stablecoins
Highlights dangerously low 10% stablecoin-to-TVL ratio
Aims to strengthen Cardano’s liquidity and ecosystem growth
Cardano founder Charles Hoskinson has proposed a significant shift of $100 million worth of ADA reserves into Bitcoin and native stablecoins—USDM and USDA. He argues that the current 10% stablecoin-to-total value locked (TVL) ratio is “killing Cardano,” limiting the platform’s financial flexibility and decelerating DeFi adoption.
Cardano’s TVL is approximately $356 million, but only $31 million is held in stablecoins. According to Hoskinson, this imbalance weakens Cardano’s usability as a lending and trading hub since stablecoins are essential for reducing volatility risk and encouraging liquidity.
Why Bitcoin and Stablecoins?
Hoskinson suggests using Bitcoin as a reliable value store and USDM/USDA stablecoins for on-chain liquidity. The proposed reallocation from ADA reserves aims to:
Reduce systemic volatility
Support easier trading and lending
Attract more DeFi developers with improved infrastructure
This would place Cardano more competitively alongside ecosystems like Ethereum and Binance Smart Chain—where stablecoins already dominate liquidity pools and TVL dynamics.
Cardano founder Charles Hoskinson proposed converting $100M of ADA reserves into Bitcoin and native stablecoins USDM and USDA to strengthen the ecosystem. He dismissed concerns over market impact and said the current 10% stablecoin-to-TVL ratio is “killing Cardano.” Cardano’s…
— Wu Blockchain (@WuBlockchain) June 13, 2025
Addressing Market Concerns
Critics fear that converting a massive ADA reserve could disrupt its market price. Hoskinson, however, dismisses this, noting that the Cardano treasury has been planning and building mechanisms—such as gradual reallocation and strategic execution—to avoid negative market shocks.
He emphasized that no ecosystem can grow sustainably without stability, and without this move, Cardano risks losing relevance as DeFi and yield opportunities shift to more stablecoin-rich platforms.
Read Also :
Cardano Eyes $100M ADA Shift to BTC & Stablecoin Boost
Ethena Gains, Pi Coin Tests $0.66, But BlockDAG’s $299M Presale & CertiK Verification Outpace Both in 2025
Yupp Raises $33M Seed to Evaluate AI Models on‑Chain
SharpLink Gaming Makes $463M ETH Splash
Qubetice Final Presale Stage Kicks off as Stellar Partners with PayPal and XRP Climbs to $2.25 – Top Cryptos to Buy This Month
The post Cardano Eyes $100M ADA Shift to BTC & Stablecoin Boost appeared first on CoinoMedia.
