#CardanoDebate Cardano (ADA) Faces Volatility with Charles Hoskinson’s $100M DeFi Proposal

As of June 14, 2025, 08:21 PM IST, Cardano (ADA) has dropped 6% to $0.63 on Binance following a bold proposal by founder Charles Hoskinson. He suggests allocating 140 million ADA (~$100M) from the treasury to boost DeFi growth by purchasing Bitcoin (BTC) and Cardano-native stablecoins (USDM, USDA, IUSD). This move aims to enhance Cardano’s ecosystem maturity, leveraging its proof-of-stake blockchain and Total Value Locked (TVL) potential.

The announcement has sparked divided community sentiment. Supporters view it as a strategic step to attract DeFi developers and increase ADA’s utility, especially with the Leios simulation achieving 1,000 TPS and Franklin Templeton running nodes. Critics, however, highlight risks amid bearish market conditions, with the Relative Strength Index (RSI) at 38.89 and a bearish MACD crossover signaling caution. Governance concerns also fuel debate, as some question the treasury’s use given recent price volatility and a 7% drop in Open Interest.

Whale activity shows mixed signals, with 80 million ADA accumulated recently. While a Grayscale Cardano ETF with 75% approval odds offers hope, the community awaits a July 15, 2025, SEC decision. Cardano’s DeFi future hangs in balance.