Cardano Founder Charles Hoskinson Defends ADA As Sound Money

As analyst contemplate the fate of Cardano considering its relative underperformance, its founder Charles Hoskinson just made a bold statement may attract attention to the network and its native coin.

While addressing the network’s community, Hoskinson stated that Cardano was the biggest threat to Bitcoin. A bold statement which he backed by highlighting a few things.

Among them includes solving the Nakamoto consensus, which allowed Cardano to be on par with Bitcoin in terms of transaction validity.

This was despite Cardano being a proof of stake network, allowing it to enjoy the benefits of both worlds.

In addition, Hoskinson believes that Cardano currently has a superior network model compared to Bitcoin and other rival networks. Especially in terms of on-chain governance and programmability.

The Cardano founder believes that those winning factors may provide a competitive edge and allow Carano to outpace the competition in the long term.

However, short term growth may not necessarily reflect those sentiments especially in terms of key network performance metrics.

Here’s How Cardano has been Fairing in Key Performance Areas

Address activity on the Cardano network revealed a bit of regression in the last 2 years. Daily returning addresses in June 2023 were averaged well above 50,000 addresses.

The network’s daily returning addresses have been averaging below 30,000 addresses so far in June. Cardano’s DEX volume has also been struggling to make a strong comeback in 2025 compared to its performance in Q4 2024.

For context, DEX volume pushed slightly above $32 million at its peak in December last year. Meanwhile, it has since declined so much that daily DEX volume has been struggling to push above $5 million.

Cardano’s TVL retreated to $360 million at press time, which meant that it hovered close to its 2025 lows. In other words, it has been struggling to recover back to levels observed at its peak in December 2024.

Other noteworthy performance metrics including app revenue and chain fees also highlighted similar findings.

Those observations confirmed that the network has been struggling to secure a strong footing in terms of growth especially compared to some of its rivals. Cardano’s native coin ADA was also a reflection of the state of the network.

ADA Bulls Struggle to Find a Strong Footing

While Charles Hoskinson described Cardano as Bitcoin’s biggest threat, those sentiments were hardly reflected on ADA price action. Unlike Bitcoin which attained a new ATH in May, ADA has been struggling to overcome its 4-week bottom range.

The cryptocurrency exchanged hands at $0.63 at press time, which means it gave up all the gains achieved in May. ADA also traded at a 52% discount from its historic high.

These discounted levels may play a role in ADA’s recovery and appeal among investors. Its MFI already indicated that the cryptocurrency signaled that there was significant accumulation since the start of Match.

While ADA’s price action was significantly discounted, it has a long way to go especially from a dominance perspective. ADA had a 0.70% dominance in the crypto market while Bitcoin dominance recently pushed above 64%.

Although ADA’s MFI signaled that accumulation was taking place, spot flow data revealed that outflows remained dominant.

However, its aggregated bids and asks delta signaled growing bullish expectations in the derivatives market.

But what will it take for Cardano price to make a strong recovery? The last time that ADA demonstrated robust bullish activity was early March this year when the cryptocurrency rallied by over 60% in one day.

That explosive performance was aided by optimism about ADA potentially being one of the few coins to be added into a multi asset U.S crypto reserve.

Whether the same reason could aid its recovery is still anyone’s guess. Meanwhile, the Cardano network still has a long way to go in terms of adoption, and that could also be holding it back.

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