Cardano is considering adding Bitcoin to its treasury as part of a plan to stimulate its decentralized finance ecosystem. The idea aims to boost growth prospects for the chain, but it remains uncertain whether this move will be enough to propel Cardano into the spotlight.
To achieve a 100x return on investment, Cardano’s price would need to increase from around $0.60 to about $60, implying a market cap of roughly $2.1 trillion. This is an ambitious goal, especially considering that Cardano currently ranks outside the top 10 by total chain fees and decentralized finance (DeFi) activity.
The project’s TVL in DeFi stands at around $251 million, which is barely 3% of Solana’s nearly $8.6 billion. Additionally, Cardano hosts only about $31 million in on-chain stablecoins, a vital lubricant for lending platforms and payment apps. This lack of liquidity makes it difficult for ambitious builders to create network effects that drive exponential growth.
While the “peer-review first, iterate later” ethos has been praised by computer science purists, it leaves Cardano reacting slowly to trends like real-world asset tokenization and artificial-intelligence agents. The chain’s slow pace of execution and lack of native demand also raise questions about its ability to generate yield from its treasury assets.
The recent plan to convert 5% to 10% of Cardano’s $1.2 billion treasury into Bitcoin and Cardano-native stablecoins aims to improve liquidity for its DeFi protocols and fund buybacks. However, critics argue that this move may indicate a lack of native demand for the chain’s own coin.
Ultimately, Cardano needs a thriving stablecoin ecosystem, consumer-friendly wallets, and deep integration with the regulated financial sector to compete in the trillion-dollar real-world-asset tokenization space. Without these fundamentals in place, achieving a 100x return on investment remains an unlikely prospect.
Source: https://www.nasdaq.com/articles/could-10000-investment-cardano-turn-1-million-2035