The Cardano blockchain is entering a defining phase in its development, seeking to reposition itself through Bitcoin-focused decentralized finance (DeFi) initiatives. Yet, it continues to grapple with core governance issues that threaten to undermine its strategic ambitions and public credibility.
Despite notable technological strides—such as Leios, Hydra, and the Midnight Glacier Drop—Cardano has struggled to convert innovation into market momentum. Founder Charles Hoskinson has been frank about the network’s difficulties in establishing a compelling and coherent narrative that resonates with the wider crypto ecosystem.
Hoskinson has identified Bitcoin-based DeFi as Cardano’s most promising opportunity to break through. This strategic pivot could open doors to the sector’s deepest liquidity pool—estimated to exceed $2 trillion. By positioning itself as a smart contract platform for Bitcoin, Cardano aims to tap into this largely untapped market segment.
However, a key institutional weakness looms large: the absence of a strong foundation and executive leadership. Hoskinson has publicly acknowledged that without a competent organizational structure to shape and push narratives, Cardano’s message is being drowned out in a crowded and competitive space.
“Bitcoin DeFi is indeed the largest opportunity, but the single biggest issue is that we are missing a competent Foundation and executive authority to push these narratives into the mindset of the space,” Hoskinson said via social media.
While the governance void persists, several players within the Cardano ecosystem are taking action. Minswap, the network’s leading decentralized exchange (DEX), has begun preparations to support Bitcoin-based functionality. Meanwhile, both Lace Wallet and USDM, a Cardano-native stablecoin, are seeing increased interest and adoption, driven by growing anticipation around Bitcoin compatibility.
These developments underscore that Cardano’s infrastructure is actively evolving, with real use cases emerging. However, the lack of centralized strategic coordination continues to blunt the full impact of these advances. Without a clear and authoritative voice to promote these innovations, Cardano remains at risk of being eclipsed by better-marketed competitors.
As the public face of Cardano, Charles Hoskinson has shouldered a disproportionate share of the network’s criticism. His efforts to promote Cardano’s technological capabilities have made him a lightning rod for controversy, with detractors labeling the platform as a fading project plagued by cult-like fanaticism.
His company, Input Output Global (IOG), continues to lead development and outreach efforts—but not without cost. Hoskinson has described the process as “brutal and expensive,” both financially and emotionally.
“It’s also been dehumanising as we have been blamed for everything wrong and aren’t allowed to feel any wins,” he shared.
Earlier proposals to improve liquidity—such as a $100 million ADA conversion fund—met with fierce community resistance. Hoskinson has responded to critics with characteristic bluntness, urging them to “grow up or fall behind,” further highlighting the fractious dynamics within the ecosystem.
Hoskinson has identified the upcoming Rare Evo conference as a potential turning point for the network. The event is expected to host critical discussions on governance reform, with proposals for a new constitutional framework and the establishment of a delegated executive structure likely to be tabled.
Among the most notable initiatives is the proposed launch of a sovereign wealth fund, aimed at financing Bitcoin DeFi development within the Cardano ecosystem. This fund would serve both as a catalyst for growth and as a statement of intent regarding the network’s strategic direction.
If successful, these governance reforms could resolve the leadership vacuum and provide Cardano with the institutional framework it needs to effectively advocate for its technical vision and market strategy.
Cardano stands at a pivotal intersection between innovation and irrelevance. While the technological foundation for Bitcoin-based DeFi is solidifying, the absence of executive leadership and a coherent governance structure remains a major obstacle.
The upcoming Rare Evo conference could define the future trajectory of the network. Should Cardano successfully implement its proposed governance reforms and establish a unified front for communication and strategy, it may yet reclaim a position of prominence in the rapidly evolving crypto landscape.
Otherwise, even its most impressive innovations may continue to fall short of their transformative potential.
June 2025, Cryptoniteuae