The Crypto Basic

The latest #Bitcoin rebound push, which began earlier in the year, may be unsustainable due to the absence of retail demand.
IT Tech, a pseudonymous CryptoQuant author, revealed this in one of his latest market commentaries. According to him, during periods of sustained upward push from Bitcoin (BTC), demand from retail investors typically spikes considerably. 
However, while BTC has recently moved to recover from the 23% decline it recorded in the fourth quarter of 2025, increasing 5% this year to first reclaim $90,000, retail demand seems to be nonexistent this time. As a result, IT Tech has advised investors to remain cautious. 
To highlight this trend, the market analyst shared the Bitcoin Retail Investor (Volume $0 to $10K) Demand 30D Change chart from CryptoQuant. Notably, this chart tracks changes in Bitcoin demand from small investors, bordering on transfers worth $10,000 or less.

Key Points
While Bitcoin’s price appears to be recovering from the Q4 2025 downtrend, the indicator has dropped to -10%, showing selloffs among retail.According to IT Tech, as Bitcoin’s price has increased toward the top of its range, the drop in retail demand is a bearish sign.The analyst stressed that this suggests large investors are solely behind the ongoing rebound effort.He believes the upside potential remains fragile as long as this trend holds, and any correction that emerges could significantly damage price action.As a result, IT Tech urged investors to regard the latest Bitcoin rebound as a “cautious, late-cycle” phase until the retail demand indicator pushes back above 0.
Why Retail Demand is Important for a Sustained Uptrend
Retail investors have an important role in every strong Bitcoin rally because they bring in fresh capital once the early gains attract attention. Specifically, institutional buyers often move first, but retail activity usually determines how long and how far the trend runs. 
Notably, when everyday traders enter the market, trading volume grows, sentiment turns optimistic, and price spikes become easier to sustain. Without this, the market depends too heavily on a smaller group of participants, which would limit its upside potential.
Right now, retail demand remains negative, which suggests that many smaller investors are selling instead of buying. This creates weak support beneath Bitcoin’s current rebound. If retail traders stay on the sidelines or continue to take profit, the market loses one of its most reliable sources of sustained buying pressure. 
How Retail Demand Has Historically Held Bitcoin’s Rallies
Historical data from the CryptoQuant chart confirms how retail participation has been crucial for past BTC rallies. For instance, the trend played out during the 2021 bull cycle. Specifically, Bitcoin’s rise from $35,000 to $69,000 by November of that year coincided with an increase in retail demand to 15%.
The same pattern appeared again in September 2023. Bitcoin advanced from $25,927 to $73,794, with retail investors supporting this uptrend, as the indicator approached 20%. Interestingly, one of the largest spikes in retail demand occurred in late 2024 and coincided with Bitcoin’s rise above $100,000.
What Analysts Are Saying About Bitcoin’s Current Position 
Meanwhile, analysts remain cautious on Bitcoin’s price action amid the current uncertainty. For context, after rising to a yearly high of $94,792, BTC faced resistance and corrected. Now, the crypto asset changes hands at $92,383, up 5.57% this month.
Despite the caution, Michaël van de Poppe believes the market trend has begun flipping to Bitcoin’s favor, as the crypto asset has continued to “attack” the $92,000 mark while holding above the 21-day EMA at $90,466.

#Dogecoin has upheld its standards so far this cycle, and analyst Bitcoinsensus has kept in touch with this sideways trend.
In a Monday commentary, the analyst asked whether Dogecoin would perform as well as previous cycles, where it exploded after a similar structural development. Notably, the analysis featured a breakdown of Dogecoin’s price action in previous market periods and how far it has progressed.
Key Data Points
Dogecoin’s current price action mirrors what the market witnessed in past market cycles.Bitcoinsensus has closely monitored this trend, asking in the recent analysis if Dogecoin would follow its previous cycles.The analysis highlighted Dogecoin’s price action in previous market cycles, with Bitcoinsensus noting that Dogecoin has been moving in several waves for over 12 years.Within this period, Dogecoin has moved in a clear pattern of correction, accumulation, and then a price rally.The last two cycles have followed this pattern, producing growths of 5,858% and 21,457%.Two of the three cyclical fractal patterns have occurred since the 2022 market cycle started.If history repeats, Bitcoinsensus says Dogecoin will rebound from recent lows and target higher prices.
Historical Data of Previous Dogecoin Cycles
Over the past 12 years, DOGE has moved in a clear pattern of correction, accumulation, and then a price rally. In the earliest cycle, Dogecoin started a correctional phase in 2014, correcting from its post-launch rally to $0.0022.
This continued until early 2015, when it entered an ascending channel from the lows of $0.001. In March 2017, DOGE broke out from this channel and began an expansion to the cycle’s high of $0.0041, culminating in a 5,858% growth per the analyst’s chart.

A similar scene played out after the 2014-2018 cycle concluded. Specifically, Dogecoin entered another triangle-like accumulation structure and consolidated until June 2020, when it reached a low of $0.0022.
DOGE transitioned to a very short accumulation zone that lasted just five months. In November 2020, the token broke out and entered an impulsive move to its May 2021 peak price of $0.7605, which remains its all-time high. The move implied a 21,457% gain from the breakout point of the accumulation zone.
Repeating Cyclical Pattern? What It Means for Dogecoin
Meanwhile, two of the three cyclical fractal patterns have occurred since the 2022 market cycle started. Dogecoin entered another descending triangle after the ATH and consolidated to the lows of $0.0569 before beginning its current accumulation phase in early November 2023.
Notably, Bitcoinsensus’ chart shows that the meme coin is now at a point where Dogecoin historically broke out. As the accumulation period winds down, the analysis shows a correlation with previous ones; hence, there is a strong chance that history will repeat itself.
However, the rate at which DOGE would increase if the bullish phase starts remains uncertain. As a result, he asked if this cycle would be as “explosive” as the previous ones.
Risks to Consider
If history repeats, Dogecoin will rebound from recent lows and target higher prices. The percentage increase will depend on momentum, adoption, and the broader market conditions.
However, it could go the other way too, and Dogecoin could dump to retest previous lows. So Bitcoinsensus is not giving financial advice, and all investment decisions should be made after thorough research.
#CryptoNewsCommunity

#XRP faces key resistance at the 0.5 Fibonacci level, with the next major move dependent on whether support holds.
XRP is currently sitting at $2.06, with a modest 24-hour surge of 0.1%. Over the last 24 hours, the price has fluctuated between $2.03 and $2.10. Despite the fluctuations, XRP has demonstrated resilience, holding above the $2.05 mark, which suggests steady demand at these levels.
Notably, over the past 7 days, XRP has seen a negative performance, down by 13.4%, indicating strong short-term bearish momentum. Within these 14 days, XRP has gained 10.7%, reflecting a continued medium term upward trend. More impressively, over the 30 days, XRP has increased by 1.9%. As these fluctuations continue, the question remains: can XRP maintain support and surge higher?
Can XRP Maintain Support?
A TradingView chart shows XRP trading within a clearly defined Fibonacci retracement range, with recent price action pulling back from the upper boundary near $2.41. During the latest move, XRP declined from this upper range, but buyers stepped in before the price could test the 0.618 Fibonacci level at around $2.02. 

For now, the next price action would depend on whether XRP holds this support and reverses upward. Further, overhead resistance now starts at the 0.5 Fibonacci level near $2.09.
If XRP fails to reclaim the $2.09–$2.17 zone, downside pressure could return, with first support at the 0.618 level, followed by deeper support at the 0.786 retracement near $1.91. A loss of that level would expose the lower demand area around $1.77, which marks the base of the broader Fibonacci structure. 
Meanwhile, the True Strength Index remains elevated but has begun to slope downward, signaling cooling momentum rather than outright weakness. This suggests XRP is consolidating after a strong impulse move, with the next directional break likely to occur once momentum decisively resets or reaccelerates.
XRP Case Scenarios
Elsewhere, in the analysis shared by More Crypto Online, the Elliott Wave theory is applied to explain XRP’s price action, with the market currently looking lifeless.

The key focus now is on the start of wave B, which will be pivotal in determining whether the market follows the yellow scenario (an upward move) or the orange scenario (a continued downtrend). Resistance is firmly set between $2.17 and $2.33, acting as an obstacle for any immediate bullish momentum.
Currently, the attention is on the $1.96 support level, which serves as the next critical structural point. A break below this level could indicate further downside, potentially testing support zones around $1.77 and $1.68.
#Crypto

#XRP has printed a bearish candlestick pattern on the weekly time frame, which has historically preceded significant price corrections.
Notably, prominent market analyst Ali Martinez drew the crypto community’s attention to this development in a January 10 tweet. At the time, XRP was close to forming a gravestone doji on the weekly chart following a strong price rejection.
Importantly, this bearish pattern has fully formed following a close at $2.072 last week. The timeframe of occurrence and the technical indication this candlestick suggests have sparked concern among XRP holders.
Gravestone Doji Puts XRP at Risk of Further Decline
XRP started last week on a bullish note, building on its 12% growth two weeks ago. The XRPL native token rallied nearly 13% in two days to a high of $2.41 on January 6 before the momentum faded.
Consequently, the asset has retraced 14% over five days, relinquishing all its earlier gains, and closed last week with a slight 0.88% decline. With this downtrend, XRP formed a deadly candlestick pattern, known as the gravestone doji.
For the uninitiated, the gravestone doji is a candlestick that has an inverse “T” shape. Typically, it has a long wick, showing severe price rejection. Additionally, its opening, closing, and low price are closely clustered after a swing high, indicating that bears stepped in during the uptrend and quickly pushed the coin below its opening price.
Last week, XRP did exactly this, dropping from its $2.41 high to its opening price of $2.09, then closing at $2.073. According to Martinez, this does not look good for XRP, suggesting it might fall much further.

Remarkably, this aligns with several other analyses, including one from CRYPTO CAPTAIN. He noted that XRP could drop to $1.8 after failing to hold the support around $2.10 and $2.05.
A Credible Bearish Signal?
Notably, the gravestone doji typically signals a price ceiling and the start of a larger bearish trend. Its occurrence on the higher time frame also adds to the strength, and XRP seems to be following that trend already, with today’s 1.20% correction to $2.043.
However, some analysts argue that candlesticks and trendlines are not credible indicators of a price trend in isolation. Their reliability increases when used with other technical indicators, such as MACD and RSI.
Moreover, analyst BigBlueNation views the XRP retracement differently. In response to Martinez, he noted that the downtrend was merely a retest before a broader bullish development.

His chart shows that XRP broke out of a descending channel last week, and the ongoing retracement was just to shake off weak hands and retest the structure before the next impulsive move.
#CryptoNewsFlash

#Dogecoin shows resilience but must close above key resistance to confirm a bullish reversal.
Dogecoin has shown resilience, holding steady above $0.138 despite the latest negative movement. The recent price chart reveals a notable downtrend, with Dogecoin struggling at the middle end of its 24-hour trading range between $0.136 and $0.142.
The consistent trading volume of $1.11 billion, up 119% in the past 24 hours, further underscores increased activity in the Dogecoin market. As the broader crypto market faces uncertainties, Dogecoin could see bullish days ahead only if the price manages to hold above the $0.136 resistance level. Will it reverse its momentum, or is a correction on the horizon?
Where’s Dogecoin Headed?
The Dogecoin 1-day chart shows an important turning point with the price surpassing the 0.382 Fibonacci resistance at $0.14101 today but quickly reversing. This Fibonacci level is crucial because it has acted as a significant overhead resistance in recent price action. 

While Dogecoin’s ability to break above this level initially signals potential bullish momentum, the reversal suggests a lack of sustained buying pressure. To reverse the current momentum and confirm a shift toward higher prices, Dogecoin needs to close above this resistance with strong momentum, ideally backed by a positive reading from the Awesome Oscillator (AO).
Notably, the Awesome Oscillator is currently showing a slightly negative stance with some bearish momentum as indicated by the red bars. If the price fails to close above the $0.14101 resistance, Dogecoin may face a pullback, with the next key support levels at the 0.5 and 0.618 Fibonacci levels, around $0.13625 and $0.13148, respectively. 
Should the support levels hold, Dogecoin might bounce back. However, if the AO flips into more negative territory, that will signal a shift toward bearish momentum, increasing the likelihood of a deeper correction towards the 0.786 Fibonacci support at $0.1247. 
Dogecoin Poised for Breakout?
Meanwhile, Jonathan Carter, an analyst on X, suggests that Dogecoin is poised for a breakout from its current descending channel formation on the daily chart. He highlights that price action above the MA 50 moving average signals a potential reversal from its extended downtrend, suggesting a bullish shift for the meme coin.

Carter lists several upside targets for Dogecoin, including $0.153, $0.182, $0.206, $0.240, and ultimately $0.280, indicating that Dogecoin is ready for a significant move upward.
#CryptoNewsCommunity

#shiba⚡ Inu tests the weekly Bollinger Band resistance, with positive short-term momentum, but faces key resistance ahead.
The Shiba Inu (SHIB) price chart for January 9 shows a modest 0.4% increase in the last 24 hours, with the price fluctuating between $0.000008509 and $0.000008827. Over the past week, SHIB has experienced a more notable 17.2% increase, signaling a short-term rebound and positive momentum.
In contrast, its performance over the last 14 days shows an even stronger 22.0% rise, reflecting an optimistic shift in the market sentiment towards Shiba Inu. This recent performance suggests that the token is recovering from its prolonged downtrend, although it still faces resistance at key levels.
The current price action, with a slight upward movement in the short term, signals that the token might be preparing to break further resistance. Can SHIB test further resistance?
Where’s Shiba Inu Headed?
The latest weekly Shiba Inu price chart shows that the crypto is currently testing the middle Bollinger Band, which is a key support level. The middle band acts as the 20-period simple moving average, and its positioning around $0.00001006 has become a significant focal point for traders.

If the price manages to push above this level, it suggests potential continuation within the existing range. However, if the price closes below the middle band, it could indicate that SHIB will move towards the lower Bollinger Band, which serves as a strong support zone near $0.000006194.
In terms of resistance, the upper Bollinger Band at $0.00001392 represents the current resistance level. This area has held up in the past, capping the price during bullish moves.
Additionally, the MACD indicator shows a slight bearish divergence, as the signal line remains above the MACD line, suggesting potential downward pressure if the price fails to break above the immediate resistance level.
With the price testing the middle band, traders will closely monitor for a break above the middle or a bounce off this level to confirm whether SHIB will continue upwards. The MACD line must also cross above the signal line for a bullish confirmation.
Shiba Inu Futures Flow
Meanwhile, the SHIB futures flow data provides insight into the recent market behavior and investor sentiment. Within the 30-minute timeframe, the inflow turned negative, resulting in a $ 22.92K outflow, which represents a 134.80% decrease.

On a larger scale, the 1-hour, 4-hour, and 8-hour periods show consistent positive inflows, particularly the 8-hour timeframe, which recorded $453.84K in net inflows (+450.48%). This indicates growing interest in SHIB futures, suggesting confidence in the token’s price action over the medium term.
Despite this, the 24-hour period saw negative net inflows, with the $226.85K outflow indicating a possible cooling off. However, this period showed a modest +91.72% change in net inflow.
#Crypto

Amid the ongoing recovery effort from #XRP , a prominent market analyst and Elliott Wave specialist has revealed why he believes a rally to $20 remains possible.
For context, XRP opened 2026 with an impressive comeback, having surged 22.59% during the first seven days of the year. This comes after the downtrend in Q4 2025 resulted in a 35% collapse, pushing XRP below the pivotal $2 level. The latest bullish flip, which recovered the $2 mark, has revived discussions about how high XRP could climb in this cycle. Amid the discussions, XForceGlobal, a South Korean Elliott Wave specialist, recently shared his opinion. 
XRP Has Held Near ATHs for First Time in History
He asked investors not to dismiss the idea of $5 or even $20 during this cycle. The market analyst said his outlook comes from studying price movement daily and linking each move to the larger Elliott Wave map. According to him, the broader picture shows that XRP now trades in an unusually tight range that goes against what traders have seen throughout its price history. 
He explained that this range helped the market set a new price floor that currently holds firm. Specifically, this floor rests around the $2 level. XForceGlobal believes this floor is now undergoing a test phase that should either confirm or reject it. 
He then mentioned earlier cycle peaks in 2018 and 2022, where XRP rallied and then quickly lost ground. According to him, the token did not repeat this pattern after its late-2024 surge. Notably, XRP held strong levels after the November 2024 run for a full year and did so fairly close to previous all-time highs. XForceGlobal believes this is a sign of strength in the market.
What Corrective Structure is XRP Currently Witnessing?
Speaking further, the analyst then highlighted the main corrective structures in Elliott Wave theory. Notably, he said markets usually move through zigzags, flats, or triangles when they pause before the next trend.

For context, zigzags slope against momentum, triangles compress inside narrowing levels, and flats hold inside a steady zone. Considering this, XForceGlobal ruled out the possibility that XRP’s current corrective structure is a triangle, suggesting that it instead resembles a flat pattern.
According to him, flat structures themselves come in different forms. The standard version looks straightforward, but expanded and running flats create fake swings that trick traders. 
He said XRP already pushed above a previous high, which leaves two choices: expanded flat or running flat. To him, the more likely option is the running flat, which keeps the previous low intact without breaking support. He called this trend a fake-out inside another fake-out that usually ends with a strong breakout in the direction of the main trend.

Possible Targets as XRP Nearly Done with Current Correction
The analyst explained that the flat pattern includes three moves down, three moves up, and a final five-wave leg. He believes XRP already completed that five-wave decline during the 35% collapse in Q4 2025, which would mean the correction ended. 
However, XForceGlobal admitted that one last dip could still happen, and a drop to the $1.30 to $1.50 area remains on the table. Despite this, evidence seems to suggest the correction may have run its course. He said the market’s latest leg higher looks like an impulsive move, not a corrective bounce, which usually marks the start of a new upward trend.

With that context, he believes XRP already sits inside the opening stages of a fresh five-wave push to the upside. He expects more nested impulse moves to build on top of each other and send prices higher as buyers take control. 
Considering this, XForceGlobal set $5 as a reasonable low-end target for the cycle. He also said XRP could reach $10, $20, and possibly even push toward $30 if momentum accelerates during the peak of the cycle.
#CryptoNewsFlash

#Dogecoin faces resistance at important levels, with an analyst noting that bullish momentum is building up.
The Dogecoin (DOGE) price chart shows a noticeable decline over the past 24 hours, with consistent troughs in its price action throughout the day. The price initially ranged between $0.1425 and $0.1491, but after reaching the upper range, it sharply declined to a new low near $0.141. This drop represents a 4% decrease in price within a single day, suggesting that Dogecoin is facing significant selling pressure.
The ongoing dip in price suggests that the current bullish momentum has fizzled out, and the market is experiencing a short-term correction. Traders will need to closely watch for any potential support around the $0.140 mark, which could serve as a key level to determine whether Dogecoin can reverse the current downtrend or if further declines are likely. What’s next for DOGE?
DOGE Faces Resistance at $0.168
Looking at the charts, Dogecoin faces immediate resistance near the $0.168 mark, aligning with the 0.786 Fibonacci retracement level. This area has proven difficult for the bulls to surpass in recent weeks, with multiple failed attempts to break above it.

However, if Dogecoin can break through this key resistance, it would likely pave the way for higher price targets, with the next resistance zone between $0.198 and $0.218. A sustained move above this resistance zone could signal a strong bullish shift, possibly testing the next resistance around $0.24.
On the downside, the price is approaching key support near $0.13, as indicated by the 1 Fibonacci level. If Dogecoin fails to maintain support at this level, the price could head lower towards the $0.10 mark. 
The Standard Deviation indicator at 0.04681 shows calm but slightly increasing volatility. A breakout above $0.168 combined with increasing volatility could lead to larger price swings, potentially driving Dogecoin towards higher resistance levels. 
Bullish Momentum Building?
Elsewhere, on X, analyst Trader Tardigrade points out that Dogecoin is showing a pair of Tweezer candlesticks on the monthly chart, signaling a potential bullish reversal. The candles represent the price between $0.117 and $0.156. 

This candlestick pattern often occurs during reversal, indicating that Dogecoin has almost completely recovered the losses from the previous month in just eight days, reflecting strong buying pressure. Ultimately, this suggests that bullish momentum is building up for Dogecoin, potentially setting the stage for upward movement. 
#CryptoNewsCommunity

#Ethereum is facing key resistance, with strong bullish momentum, while liquidation data highlights ongoing market volatility.
The first week of 2026 has seen Ethereum (ETH) trading at $3,253.44, down a modest 1.2% in the last 24 hours. With a market cap steady at $392.7 billion and a robust 24-hour volume of $28.85 billion, ETH holds its no. 2 rank firmly.
Ethereum has gained 9.5% over the past 7 days and 11% in the last 14 days, reflecting strong positive momentum.
A CoinGecko chart shows a positive momentum, particularly from January 6, with a sharp price increase before stabilizing above $3,240. Given the bullish trend, Ethereum’s price could continue to rise, particularly if it breaks the immediate resistance levels above $3,300.
Ethereum Price Analysis
Ethereum is currently testing key Fibonacci retracement levels as it approaches potential resistance at $3,303, which aligns with the 0.786 Fibonacci level. The recent price action shows a strong rally, but ETH is facing a challenge at this level, which could act as an overhead resistance.

The next significant resistance level is the $3,447 area, marking the top of the current range. If Ethereum can close above $3,303, it may confirm a breakout and could target higher levels, potentially pushing toward the $3,400–$3,600 zone.
On the downside, ETH has established $3,190 as potential support, marked by the 0.618 Fibonacci retracement level. If Ethereum experiences a pullback, this area will likely act as a critical floor, providing buying support. A drop below this level would open the door for further declines towards $3,100 or $2,980, the next key Fibonacci levels.
The Awesome Oscillator also supports this, with green bars indicating bullish momentum as long as the market remains above these support zones.
Ethereum Liquidation Data
Ethereum’s futures market, albeit punishing the bulls, continues to show strong volatility and potential for price swings. Over the past 24 hours, $101.83 million in total liquidations occurred, with $56.65 million coming from long positions and $45.18 million from short positions.

In shorter time frames, long positions consistently lead the liquidations, such as in the 4-hour and 1-hour windows, where $7.60 million and $7.21 million worth of long positions were liquidated, respectively. The significant pressure on long positions suggests a bullish bias in Ethereum’s price action, but the high liquidation figures are a sign of caution.
#CryptoNewsCommunity

An analysis has highlighted two major reasons why Cardano is poised to target higher prices from the current market level.
Cardano has rallied over 23% YTD, spurred by a broader market resurgence. Despite this, a January 6 TradingView analysis from a pseudonymous market commentator suggests the coin could see higher prices.
Cardano Holds Channel Support
Notably, one of the reasons for this bias is ADA’s firm grip of a channel support on the daily chart. The analysis highlighted that the cryptocurrency has formed a base at a multi-month demand zone around $0.35.
Cardano visited this area in December, but buying pressure from the region cushioned weak price action. Consequently, it bounced from this region to a high of $0.43 this week before a slight correction.
In a broader context, an accompanying chart shows that ADA broke below an ascending channel in November 2025, as the market turned bearish from August 2025 onward. While the asset broke below the lower support trendline, the multi-month support just below the zone has held, with multiple bullish reversal signals pointing to a bounce to much higher prices.

ADA to Grab the Liquidity Above the Current Price
Furthermore, the analyst identified a liquidity cluster above the current market price. Usually, these clusters are price magnets, and whales push an asset to grab them before subsequent moves.
The analyst expects nothing different from Cardano, predicting that it will rally further to claim these visible liquidity pockets ahead. Interestingly, he identified these areas in his analysis and highlighted what would invalidate a possible uptrend to attain them.
Cardano Take-Profit Areas
First, he placed his entry between $0.34 and $0.37. At the time of writing, ADA has moved past these areas, changing hands at $0.41.
His first take-profit target is $0.44, which he identified as the first supply zone. His second and third TP areas are $0.50 to $0.55 and $0.60 to $0.65. He called the former a liquidity shelf and the latter the “small sell order” region.
Finally, he highlighted the $0.73-$0.78 range as the maximum target. The supply zone, identified as the golden Fibonacci level, represents a 78% and 90% increase from the current market price.
However, the market analyst emphasized that a drop to $0.245 invalidates this move. The stop loss aligns with a break below the channel’s structural lows.
Bitcoin and Ethereum Must Stay Stable
Notably, the analyst also hinged this rally on the stability of Bitcoin and Ethereum, the two largest cryptocurrencies by market cap. A sharp downtrend in these assets could undermine the potential bullishness in ADA.
Cardano would also benefit from the liquidity rotation to layer 1 tokens. Notably, most altcoins have outperformed BTC recently, and the market commentator suggests investors would switch towards large-cap coins for better gains rather than hold BTC.
#CryptoNewss

#Cardano founder Charles Hoskinson has shared his thoughts on where the next catalyst for the growth of the ADA ecosystem would come from.
Notably, the crypto industry leader highlighted this in a recent interview with the Altcoin Daily co-owner Aaron Arnold. He pegged the next wave of Cardano adoption on the expansion of its decentralized finance (DeFi) ecosystem.
More Bullish on Cardano or Midnight?
Arnold asked Hoskinson if he is more bullish on Cardano or its sidechain, Midnight. In response, he reiterated his commitment to both projects but highlighted that a closer collaboration between them would spur widespread adoption for the entire ADA ecosystem.
He further noted that Cardano has peaked as a layer 1 network. Hence, the founder claimed that for Cardano to get to the next level, it needs to embrace the DeFi ecosystem.
“We’ve got to start putting up the numbers,” Hoskinson noted, emphasizing the need to grow in key DeFi metrics.
Hoskinson stressed that the Cardano ecosystem’s monthly active users (MAU), total value locked (TVL), and stablecoin issuance must increase by 10 to 100 times from their current levels. According to him, this is necessary to unlock the next wave of growth for Cardano.
Meanwhile, the network has made several efforts to boost its DeFi ecosystem, which currently lags behind other major chains like Ethereum and Solana. Recently, the Cardano Foundation committed eight-figure ADA to enhance stablecoin DeFi liquidity. Hoskinson also revealed that the ecosystem is working to bring USDC and USDT to Cardano this year, aiming to improve user traction.
Midnight to Enhance Cardano Adoption
Further, Hoskinson called Midnight the first of the fourth generation of cryptocurrencies, stating that it brings something different to the entire digital asset industry. He noted that if Midnight moves faster in its emerging privacy niche, it could capture a large share of the crypto market.
Again, he stressed that if decentralized applications (DApps) on Cardano work closely with Midnight by upgrading to a hybrid platform and adding privacy to their systems, they could gain the next million users. He highlighted that this would happen as they would gain a large number of users from Bitcoin, XRP, and other chains. Consequently, this would affect Cardano’s DeFi metrics and trigger the next bull season for the network.
Notably, Hoskinson had previously highlighted the role Midnight would play in boosting Cardano DeFi, citing its multi-chain compatibility and privacy advantages. In the interview, he added that Midnight would attract even the legacy financial system, seeking RWA tokenization and global remittance.
Ultimately, the aim of the close collaboration between Cardano and Midnight is to create a new experience for retail and institutional users better than those seen in Ethereum and Solana. Hoskinson stated that it would be a “bull year” for Cardano if this happens.
#CryptoNewss