Cardano's DeFi Lag Raises Concerns, Despite Trump's Crypto Stockpile Proposal

Cardano (ADA) has long been a prominent player in the cryptocurrency market, frequently ranking among the top digital assets by market capitalization. However, its recent performance has sparked concerns among investors about its long-term viability. Despite being included in US President Donald Trump’s initial proposal for a national crypto stockpile, ADA’s price movements and onchain activity have raised eyebrows, leading some to label it a “zombie crypto.”

Recent analyses indicate that the Cardano network lags behind in decentralized finance (DeFi) adoption. Compared to Ethereum and Solana, Cardano has a significantly lower total value locked (TVL), which hinders its ability to attract liquidity and stablecoin activity. While some advocates point out that Cardano’s DeFi sector is still in its nascent stages, newer blockchains have already surpassed it in terms of user engagement and trading volume. The critical question now is whether upcoming developments can reverse this trend.

Looking ahead, several key catalysts could shape ADA’s future. The potential launch of an ADA exchange-traded fund (ETF) and its growing role in Bitcoin’s DeFi ecosystem are significant developments that could define 2025 as a pivotal year for ADA. However, it remains to be seen whether these advancements will be sufficient to turn the tide in Cardano’s favor.