Cardano News Today: Cardano's Scalable Vision Trapped in Liquidity Catch-22

Cardano's extended-UTxO model and upcoming upgrades are drawing attention as founder Charles Hoskinson positions the blockchain for a scalable future. Input Output, the firm behind Cardano, recently announced the Ouroboros Phalanx upgrade, which aims to bolster network security and increase transaction speeds by up to 30%, according to a TradingView report. This development aligns with Hoskinson's broader vision for Cardano to address scalability challenges while integrating with Bitcoin's DeFi ecosystem.

Hoskinson has faced scrutiny over Cardano's relatively low total value locked (TVL) and slow decentralized finance (DeFi) adoption compared to rivals like Ethereum and Solana. In a recent statement, he acknowledged the gap but argued that traditional metrics fail to capture the network's governance strength and user base. He highlighted that Cardano has 1.3 million active participants staking or engaging in governance, collectively holding over $15 billion in ADA, according to a Yahoo Finance article. However, most ADA holders remain passive, creating a "chicken-and-egg" dilemma where low liquidity deters partnerships and further adoption, as noted in a BeInCrypto piece.

To break this cycle, Hoskinson outlined a multi-year roadmap emphasizing Bitcoin interoperability and real-world finance integration. Key initiatives include the Midnight privacy-focused sidechain and RealFi, a microfinance platform targeting African markets. These projects aim to enable cross-chain lending, stablecoin conversions, and real-world asset-backed DeFi products, as the Yahoo Finance article explained. Hoskinson stressed that simply introducing major stablecoins like USDT or USDC would not solve Cardano's structural issues, noting that the network already has robust native alternatives like USDM and USDA, a point also raised in the BeInCrypto piece.

Technologically, Cardano's extended-UTxO ledger and Plutus validators offer deterministic transaction simulations, supporting intent-based user flows. Hoskinson described this as the next evolution in cryptocurrency, where users declare outcomes (e.g., buying coffee) while automation handles execution across chains, as described in The Coin Republic article. The Coin Republic article noted that three Vasil-era upgrades—reference inputs, inline datums, and reference scripts—reduce friction in intent fulfillment, enabling efficient batcher systems for decentralized exchanges.

Price-wise, analysts see potential for ADA to break above $0.80, with some predicting a target of $1.70 if the network sustains momentum. The cryptocurrency has been consolidating in a symmetrical triangle pattern since early 2025, with support zones identified between $0.58 and $0.67, according to The Coin Republic piece.