The Cardano ecosystem could soon undergo a change in strategic treasure to energize its Defi and Stablecoin sectors.
On June 13, the founder of the Charles Hoskinson network suggested allocating around $ 100 million from ADA to the network treasure to a mixture of stablecoins and bitcoin.
According to him:
“(W) e take about one hundred million ADA in the treasure and convert it into a mixture of a collection of stablescoins in place in Cardano, therefore USDM, USDA, as well as stable syntheses supported by ADA as Iusd and also convert a part of Bitcoin to Bitcoin to Prime The Bitcoin Defi.”
Hoskinson stressed that this decision would tackle a key weakness within the Cardano ecosystem: the limited adoption of stablecoins, which has hampered its competitiveness in the DEFI space.
He said:
“What kills Cardano is our situation of Stablecoin. It would start to resolve it. Generate non -inflationary income for the Treasury and help build our economy DEFI. ”
However, Hoskinson noted that such a decision would depend on the evaluation of the preparation of the Cardano DEFI protocols and the guarantee of lasting ecosystem yields.
Hoskinson’s concerns are premonitory considering that Cardano drags far behind the main actors like Solana and Ethereum in DEFI and Stablecoin activities.
According to Defillama data, the network ranks 46th in the global activity of Stablecoin, with a market capitalization of around 31.3 million dollars. At the same time, the total value of the assets locked on the network for the DEFI activity is less than $ 400 million, well below that of other rival networks, which come up against billions.
Impact of the ADA sale
Meanwhile, community concerns have surfaced that the sale of $ 100 million from ADA could negatively affect the price of the token.
However, Hoskinson rejected these fears, arguing that Cardano’s liquidity can easily manage such a transaction.
He said:
“The markets are deep. We could convert ADA 140 million over a week without moving the market using OTC and both. It is a false story. “
Hoskinson also noted that the sale would exert a minimum price pressure if it was properly executed, arguing that the perception of a large sale could lead to more volatility than the sale itself.
He added:
“The markets are deep. Billions of dollars with ADA commerce every week around the world. The belief that Cardano Defi is optimistic alone would create a purchase request to compensate for a liquidation on this scale. If 100 million could move the market, Cardano would have extreme volatility. ”
