Cardano News Today: Cardano's $1 Trillion Bet: Overcoming DeFi Lags with AI and Bitcoin

Cardano founder Charles Hoskinson has outlined a strategic pivot to address persistent criticism of the blockchain's decentralized finance (DeFi) underperformance and inactive ADA holder base, positioning the network for a long-term vision of becoming a $1 trillion ecosystem by 2030. In October 2025, Hoskinson detailed a roadmap emphasizing AI-powered payments, real-world use cases, and Bitcoin interoperability, signaling a shift from research-focused development to practical adoption, according to a Blockchain Magazine report.

A cornerstone of this strategy is the integration of x402, an open-payment standard developed by Coinbase, which enables AI agents and machines to execute pay-per-use transactions on-chain without traditional verification mechanisms, according to a Bitcoin Sistemi article. Patrick Tobler, founder of NMKR, highlighted that Cardano's implementation of x402 will leverage its Masumi smart contract platform for deeper automation, distinguishing it from competitors, the Blockchain Magazine report noted. The first proof-of-concept memecoin mint using x402 has already launched, suggesting imminent mainstream adoption, the same Blockchain Magazine report said. Hoskinson described the development as "very big for Cardano," noting its potential to underpin the AI-agent economy, as the report added.

Despite these advancements, Cardano's DeFi ecosystem remains underdeveloped, with a total value locked (TVL) of $2.9 billion—far below Ethereum and Solana—and a stablecoin market capitalization of just $36 million compared to Ethereum's $164 billion, the Bitcoin Sistemi article reported. Hoskinson attributed this to governance and coordination challenges rather than technological limitations, stating, "It's not a technology problem. It's a problem of governance and coordination and ultimately accountability and responsibility," in a BeInCrypto interview. He criticized the Cardano Foundation for past inefficiencies and emphasized the need for clear accountability in driving ecosystem expansion, the BeInCrypto interview added.

To bridge the gap, Hoskinson proposed integrating Bitcoin DeFi with Cardano's Midnight privacy sidechain and RealFi microfinance platform, aiming to unlock billions in liquidity by enabling ADA and BTC to be lent, converted into stablecoins, and used in real-world lending products, according to a Yahoo Finance report. He also stressed the importance of mobilizing ADA holders—many of whom are passive stakers—through targeted marketing and events to boost DeFi participation, the Yahoo Finance report said.

The network's recent upgrades, including the Chang hard fork, have increased throughput to 1,000 transactions per second, laying the groundwork for large-scale payments, the Blockchain Magazine report noted. However, success hinges on regulatory clarity, sustained execution, and competition from high-performance blockchains, the report added. Hoskinson acknowledged the "chicken-and-egg" dilemma: low activity deters partnerships, while limited integrations further stifle adoption, the Yahoo Finance report observed.

With pilot programs slated for early 2026, Cardano's ability to deliver on its AI-driven and Bitcoin-integrated vision will determine whether its ambitious $1 trillion goal becomes a reality, the Blockchain Magazine report said.