Hoskinson blames non-technical factors for Cardano’s TVL decrease as ADA falls by 47%
November 7, 2025
Cardano founder, Charles Hoskinson, recently addressed the current challenges facing the blockchain solution, attributing its weaknesses to the low usage of Cardano DeFi by users. Despite the chain’s technological capabilities and the availability of necessary tools, the ecosystem has not seen the expected influx of users engaging with DeFi, AI, and protocol features.
Hoskinson emphasized the potential of the Cardano ecosystem, describing it as “fertile,” but noted that users are primarily focused on holding and staking tokens rather than actively utilizing the available DeFi functionalities. This shift in user behavior has contributed to a stagnation in total value locked (TVL) at around $240 million, with ADA experiencing a significant decline of 47% in value over a three-month period.
While some have criticized the lack of user engagement with Cardano’s DeFi offerings, Hoskinson defended the platform, highlighting the distinction between the ability to build on Cardano and the actual utilization of the built features. He suggested that the current challenges faced by the ecosystem are not a result of technical deficiencies within the chain’s technology but rather a reflection of user behavior and adoption patterns.
In response to the recent decline in ADA’s value and TVL, a market analyst described Hoskinson’s defense as “expected” and “limited,” indicating that the downturn in ADA’s performance was within the realm of anticipation. Despite the downward trend in value, Cardano supporters remain optimistic, rejecting criticisms and maintaining a hopeful outlook on the future of the project.
As Cardano continues to navigate through market challenges and fluctuations, the platform’s supporters emphasize the importance of patience and long-term vision. While short-term price predictions may point to extended weakness and bearish pressure on ADA, supporters believe in the underlying potential of the ecosystem and remain committed to the project’s growth and success.
In conclusion, the current hurdles facing Cardano stem from low DeFi usage rather than fundamental flaws in the platform’s technology. As the ecosystem works to enhance user engagement and adoption of DeFi features, supporters remain steadfast in their belief in the long-term viability and potential of Cardano as a leading blockchain solution in the industry.
