Charles Hoskinson, founder of Cardano, has spotlighted the potential of “decentralized and private Bitcoin bridges” following Starknet’s recent launch of its strkBTC bridge. Hoskinson emphasized that this is one of the largest, yet underexplored, opportunities in the crypto ecosystem, and signaled that Cardano is poised to become a leader in this race.
Strategic moves in bridge technology
An internal analysis of Cardano’s ecosystem reveals a pressing need for external capital, especially Bitcoin liquidity. On-chain data from DefiLlama highlights this demand with hard figures: ADA is currently trading at $0.25, and Cardano’s total market capitalization has reached $9.14 billion.
Yet, the total value locked (TVL) in Cardano’s decentralized finance (DeFi) applications stands at just $127.81 million—a figure about 80 percent lower than its late 2024 peak. The network’s daily revenue has dropped to only $477.
Experts evaluating Cardano’s current position observed, “There’s a stark gap between ADA’s market capitalization and the level of network usage.”
Market data from CryptoAppsy’s trading screens confirm ADA’s price at $0.25, underscoring the disconnect between Cardano’s valuation and its actual usage.
Midnight project and rivalry with Starknet
While Starknet has just initiated the three-phase rollout of its strkBTC bridge, Cardano is stepping up its game with Midnight, a privacy-focused blockchain network launched in March. Midnight leverages the same UTXO (unspent transaction output) architecture underlying Bitcoin, and uses zero-knowledge (ZK) protocols to enable the flow of Bitcoin liquidity into the Cardano ecosystem.
In practical terms, UTXO refers to unspent transaction outputs on blockchains, tracking every transfer for balance verification—especially on networks like Bitcoin. ZK protocols are cryptographic methods enabling verification of information without fully disclosing it.
Hoskinson’s message that “we can win this race” signals Cardano’s ambition to fill its smart contract infrastructure with Bitcoin-based value and preserve its significant market capitalization.
Rising internal pressure and ongoing claims
Beyond technological developments, Cardano faces increasing debate within its own community. In Japan, renewed allegations have surfaced regarding the country’s crypto community allegedly being created by phone scammers during Cardano’s past ICO phase. Hoskinson, responding to growing pressure, firmly rejected these claims and cited official presale audit results to support his stance.
Hoskinson directly addressed the fraud accusations, insisting, “These allegations against the Japanese community are completely baseless.”
The continuing intensity of these debates signals that both Cardano and Hoskinson will likely face heightened scrutiny in the coming period, increasing the tension across the sector as a whole.
| Parameter | Cardano | Starknet |
|---|---|---|
| BTC bridge | Planned (via Midnight) | Launched (strkBTC, 3 phases) |
| TVL | $127.81 million | Not available |
| Daily revenue | $477 | Not available |
| ADA price | $0.25 | None |
