Where Did Cardano Lose Its Momentum? Hoskinson Breaks It Down

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Cardano founder Charles Hoskinson is being candid about the blockchain’s struggles and its future. In a recent interview with CoinDesk, he discussed where Cardano went wrong, why he believes Bitcoin DeFi could surpass Ethereum, and his ambitious $200 million healthcare project.

Here’s a closer look at his thoughts and where Cardano stands today.

Where Cardano Lost Its Momentum

In 2021, Cardano was sitting at #3 on CoinMarketCap and riding the excitement of its long-awaited smart contracts. However, Hoskinson admits that they “bet wrong” on the smart contract model, as it was too rigid, making it difficult for developers to build.

That lack of accessibility cost Cardano its momentum. Developers and projects shifted to Solana, which offered a faster, easier environment for building “that’s a phenomenal example of where we bet wrong,” he said. 

He notes that while Cardano did not face major hacks and bugs, but by being so “inflexible and hostile” for builders, it missed the wave that could have carried it forward.

However, since then, Cardano has adjusted. By 2025, developers can build in familiar languages like Rust and TypeScript, while still benefiting from Cardano’s security.

Hoskinson’s Latest Bet On Healthcare

Charles Hoskinson’s biggest bet outside crypto is a healthcare clinic in Gillette, Wyoming. He has invested $200M into building a patient-centered system, with AI support, and affordability. 

Blockchain technology may also play a role in this project. Hoskinson is exploring tools like zero-knowledge proofs, which allow facts to be verified without revealing sensitive personal information. He plans to open-source the clinic’s protocols so that others can replicate the model.

Will Ethereum Dominate the Defi Space?

Hoskinson also questioned whether Ethereum can hold its lead in Defi.

He argues that Ethereum may not last as the dominant smart contract platform over the next 10–15 years. Since Ethereum couldn’t scale at the base layer, it now depends on layer-2s, but those players can easily go multi-chain, pulling users and liquidity elsewhere.

On the other hand, he calls Bitcoin “the sleeping giant.” Once Bitcoin DeFi matures, Hoskinson believes its total value locked could surpass Ethereum’s entire market cap, with major players like sovereign funds and BlackRock heavily involved.

Hoskinson said that there is no strong reason to use Ethereum to power Bitcoin DeFi. Instead, solutions like Cardano or Layer-2 platforms like Stacks are better suited. 

Cardano Activity Surges

Meanwhile, Cardano’s futures open interest has jumped past $2.5B,  the highest since 2021. Data from Tap Tools shows that the network processed over $4B in on-chain volume in just the past week. 

Cardano’s stablecoin market is also approaching $40 million TVL, signaling growing adoption.