#CardanoDebate The Cardano debate revolves around the network's scaling efforts and stablecoin liquidity. Here's what's happening:

*Scaling Debate*

- Critics, like Justin Bons, founder of Cyber Capital, argue Cardano's current throughput of 18 transactions per second (TPS) is insufficient and question the feasibility of future scaling solutions like Leios and Input Endorsers (IE).

- Supporters, including stake-pool operator Jaromír “Cardano YOD₳” Tesař and Phil UPLC, CEO of Anastasia Labs, cite potential for 10,000 TPS with Ouroboros Leios consensus layer and internal simulations demonstrating higher TPS.

*Stablecoin Liquidity Debate*

- Cardano co-founder Charles Hoskinson proposes converting $100 million worth of ADA into Bitcoin and native stablecoins like USDM to strengthen DeFi and liquidity landscape.

- The goal is to achieve a 33% to 40% stablecoin-to-TVL ratio, addressing Cardano's current low stablecoin presence and fostering long-term adoption.

- Critics warn this plan could trigger further ADA price drops amid current market weakness, while others suggest minting a crypto-backed stablecoin using ADA as an alternative ¹ ².

*Community Reaction*

- The proposal has sparked debate within the community, with some expressing concern about market impact and others supporting the plan to boost DeFi growth.

- Cardano's inclusion in Nasdaq's Crypto US Settlement Price Index signals growing institutional recognition despite current ecosystem challenges ² ³.