The EMURGO community, one of the founding companies of Cardano, approved allocating 50 million ADA—about USD 33.42 million—to reinforce the liquidity of stablecoins in the network’s DeFi ecosystem. The initiative, called Stablecoin DeFi LiquidityBudgetexceeded the 50% approval threshold, evidencing strong support from community members.
Through its official account on X, EMURGO confirmed their vote in favor, pointing out that this financing will contribute to more stable markets and more agile access for both developers and users of the Cardano DeFi ecosystem. The company also thanked all the delegate representatives who participated in the vote and congratulated the community for getting involved.
The decision also received support from users. Some people highlighted the proposal as correct and necessary for the development of stablecoins, calling the approval a “great success” and a demonstration of leadership. Others suggested leveraging available funds to continue expanding liquidity and further strengthening DeFi projects within the network.
The truth is that the strengthening of liquidity in Cardano could favor the development of DeFi solutions in Bitcoin in the near future. In fact, the announcement comes after recent statements by Charles Hoskinson, founder of the network, who in an interview with an American media described Bitcoin DeFi—an emerging decentralized finance ecosystem on Cardano based on BTC—as a “sleeping giant.”
So, Hoskinson predicts Bitcoin DeFi will awaken in the next three to five yearsto the point that it could surpass Ethereum’s market capitalization, attracting liquidity from sovereign wealth funds and large corporations. This was reported by CriptoNoticias.
Bitcoin DeFi represents a territory with great opportunities for expansion; Ethereum, Solana or Aptos would be at a disadvantage against Cardano in capturing liquidity from Bitcoin, believes Charles Hoskinson.