to leave a comment.
▲ Cardano (ADA)/AI-generated image
The CEO of Flare (FLR) has publicly criticized the DeFi (Decentralized Finance) performance of Cardano (ADA), intensifying the competition for leadership in Bitcoin-based DeFi. Flare claims it has surpassed Cardano in Total Value Locked (TVL) despite a later start, putting forward its strategy of building a single interoperable DeFi layer.
The Crypto Basic reported on May 6 that Hugo Philion, CEO of Flare Network, criticized Cardano for underperforming in the DeFi sector despite its early start. Philion pointed out that Cardano entered the market in 2017 and Flare launched six years later in January 2023, yet Cardano failed to convert its first-mover advantage into DeFi dominance.
Philion claimed that Cardano attempted to replicate Flare's DeFi strategy but failed. Citing DeFiLlama on-chain data, he stated that Flare's Total Value Locked (TVL) is approximately $159 million, surpassing Cardano's approximately $131 million. Philion emphasized that these figures demonstrate the performance gap between the two networks in DeFi.
These remarks came after Cardano founder Charles Hoskinson revealed his vision for Bitcoin (BTC)-based DeFi. Hoskinson proposed that Cardano's smart contract infrastructure could be used to provide programmable functionality to potential US Bitcoin reserve assets. He also mentioned that this vision could extend to institutional assets held by BlackRock and major corporations.
Philion dismissed the possibility of Cardano becoming the leading platform for Bitcoin-based DeFi. He stated that Flare would gain an advantage by building a unified DeFi layer that supports FXRP, FBTC, FXLM, real-world assets, and stablecoins within a single interoperable system. Through this, Flare is pursuing a strategy to become a central hub for cross-chain liquidity and yield generation.
Flare explained that it has already made progress through its FXRP initiative. Currently, approximately 154 million XRP are locked on Flare, and users are minting corresponding FXRP. Of these, about 140 million FXRP have been deployed in DeFi protocols, generating returns for participants. Cardano is also expanding its own strategy with a non-custodial collateral model and its first Bitcoin DeFi protocol, Cardinal, with XRP support remaining on its future roadmap.
*Disclaimer: This article is for informational purposes only and is not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.