Cardano Slips as Hoskinson Proposes $100M Treasury Shift to Stablecoins and BTC
Cardano ($ADA ) took a hit on Friday, falling nearly 4% after its founder Charles Hoskinson proposed a bold shift in treasury strategy — converting $100 million worth of ADA into stablecoins and Bitcoin. The move, according to Hoskinson, is aimed at revitalizing Cardano’s sluggish DeFi ecosystem by addressing the platform’s limited stablecoin supply.
In a recent YouTube update, Hoskinson pointed out that Cardano’s stablecoin presence is “just under 10%”, a figure far below that of other leading DeFi platforms. Supporting this, DefiLlama data shows Cardano hosts only $31 million in stablecoins despite a total value locked (TVL) of $273 million. Hoskinson also emphasized that the current Cardano treasury lacks yield-bearing assets, suggesting an urgent need for a more productive allocation.
Under the new proposal, a portion of ADA from the treasury would be converted into stablecoins — potentially boosting the ratio to 33–40% — and an estimated $25M to $50M would be allocated to Bitcoin. The strategy intends to support the growth of DeFi on Cardano, attract yield-seeking investors, and increase ecosystem liquidity. “We’re going to assess the feasibility of this approach and engage with DeFi teams in the ecosystem to evaluate readiness,” said Hoskinson.
However, the plan has stirred mixed reactions. Critics argue that offloading a large volume of ADA could further suppress its price, especially amid a fragile macro environment marked by growing tensions between Israel and Iran. Hoskinson, however, dismissed these concerns, saying the amount involved is not significant enough to damage network fundamentals.
From a technical standpoint, ADA is hovering near the $0.60 support level after being rejected at the top boundary of a descending channel. If this level breaks, ADA may seek support near the lower end of the channel. On the upside, bulls must push the price above the channel’s resistance to target $0.84.
