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Charles Hoskinson, the founder of Cardano and Input Output Global (IOG), has shared a detailed view of what he believes could transform the Cardano ecosystem and push its total value locked (TVL) into the billions. Despite Cardano’s large market presence and its reputation for academic-driven development, the network continues to lag behind competitors in decentralized finance adoption. Hoskinson now says he understands exactly how to reverse this trend.
Speaking during a recent podcast, Hoskinson revisited the criticism surrounding Cardano’s slow TVL growth and explained that the roadmap to fixing the issue has already been laid out. Although Cardano stands among the most recognizable blockchain projects, its DeFi performance has not lived up to expectations compared to rising ecosystems like Solana and established powerhouses like Ethereum.
Hoskinson made a bold claim: he believes there is a clear path to securing “hundreds of millions, if not billions of dollars in TVL” for the network. According to him, everything required to change Cardano’s DeFi position is already in motion — and it begins with Midnight.
Midnight Could Be Cardano’s Turning Point
Midnight, a privacy-focused sidechain being developed under the Cardano ecosystem, is currently in its testnet phase but has already received attention across the crypto industry. Its NIGHT airdrop attracted participation from millions of users across various chains, highlighting its strong early appeal.
Hoskinson has repeatedly described Midnight as a high-potential project due to its focus on data protection, privacy and developer-friendly tools. Several major partnerships have already been established, and the increasing public demand for privacy-centric blockchain solutions could play directly into Midnight’s growth.
If Midnight succeeds in encouraging developers and users to migrate or build on Cardano, Hoskinson believes capital inflows will naturally follow. The appeal of a private smart-contract layer, combined with Cardano’s secure base layer, could create an ecosystem attractive to large DeFi applications and enterprise adoption.
RealFi and ZKP Innovations Target a Global Market
Midnight is only one component of the broader strategy. Hoskinson argues that Real Finance (RealFi) — a movement designed to connect blockchain to real-world financial use cases — will play a decisive role. RealFi focuses on delivering real-world value, such as microloans and fair credit distribution to underbanked populations worldwide.
With zero-knowledge proof (ZKP) technology integrated into the process, Cardano aims to create a secure and private environment suitable for large-scale global finance. Hoskinson believes this technological foundation could attract billions in liquidity over time as institutions and DeFi businesses increasingly seek compliance-friendly blockchain frameworks.
Implementing these integrations, however, comes with a cost. Hoskinson estimated the full transformation would require an investment of approximately $100 million. The Cardano Foundation has already shown willingness to support this direction, recently allocating eight-figure ADA incentives aimed at boosting liquidity, developer activity and DeFi adoption.
Bitcoin and XRP DeFi Could Push TVL to New Heights
While Hoskinson acknowledged that low participation from existing ADA holders has contributed to TVL stagnation, he continues to promote additional ways to attract large capital flow into the ecosystem. One development he highlighted is the integration of Bitcoin and XRP liquidity into Cardano-based DeFi.
Hoskinson predicted that Bitcoin DeFi alone could lift Cardano’s total value locked to approximately $15 billion. Work has already begun across the ADA ecosystem to gain deeper access to the Bitcoin market, particularly its vast liquidity. He pointed out that Cardano’s eUTXO accounting model shares similarities with Bitcoin’s UTXO system, potentially making it easier to create scalable financial applications tailored for BTC holders.
In addition to Bitcoin, Hoskinson sees XRP as a major opportunity. With more than $100 billion in potential XRP DeFi liquidity available across the broader fintech and payments world, he believes that enabling XRP-related financial tools on Cardano could redirect a significant amount of capital toward the network. Bringing XRP liquidity into ADA’s ecosystem, he said, could immediately give Cardano a competitive advantage and place it at the center of a larger DeFi movement.
Building Toward a Long-Term DeFi Future
Cardano’s performance in decentralized finance has long been a topic of debate, but Hoskinson’s latest comments reflect an increasingly confident outlook from the project’s leadership. With Midnight nearing wider rollout, RealFi entering a new phase of development and ecosystem proposals tied to Bitcoin and XRP liquidity, the network appears to be restructuring itself for the next stage of its evolution.
If capital inflow accelerates as expected, ADA stakeholders believe Cardano could develop a stronger position within the global DeFi sector — one defined not only by smart-contract platforms and yield farming, but also by institutional finance, real-world credit and multi-chain interoperability.
Whether the strategy will translate into billions of dollars in TVL remains to be seen, but interest in Cardano’s planned upgrades is steadily increasing. The combination of privacy-driven smart contracts, real-world financial applications and deep liquidity from Bitcoin and XRP represents the most ambitious expansion plan in Cardano’s history.
The crypto sector will continue watching closely as Midnight progresses from testnet to wider adoption and as Cardano’s growing infrastructure begins inviting new developers, users and long-term capital into the ecosystem.
