Cardano (CRYPTO: ADA) is trading around $0.79, down 0.6% on Tuesday as founder Charles Hoskinson told an audience that the network is preparing to integrate Bitcoin functionality, potentially drawing billions in liquidity.

Cardano Founder Unveils Bold Bitcoin DeFi Vision

Charles Hoskinson said a dedicated 19-person team is developing “Bitcoin DeFi,” which would let users transact directly in Bitcoin (CRYPTO: BTC), pay fees in Bitcoin, and earn yield back in Bitcoin using Cardano infrastructure.

“We anticipate billions of dollars of TVL from the Bitcoin network as people click the toggle and use Cardano to do Bitcoin things,” Hoskinson said.

UTXO Edge Sets Cardano Apart From Rivals

Hoskinson said Cardano’s extended UTXO framework makes it the “largest programmable ledger,” giving it scalability advantages over rivals such as Ethereum and Solana. 

With Bitcoin’s Taproot upgrade also built on the UTXO standard, he argued Cardano is positioned to capture part of the $4 trillion Bitcoin market while acting as a bridge between Bitcoin and smart contracts.

ADA Price Battles To Hold $0.76 Support

ADA Key Technical levels (Source: TradingView)

Technical Analysis: ADA price is consolidating after last week’s sharp drop from the $0.90 region. The token is holding above $0.76 support, with resistance at $0.82 and the 200-day EMA at $0.83.

A breakout above $0.83 could open the path to $0.86 and $0.93, while a failure to defend $0.76 risks deeper losses toward $0.72 in short-term.

The RSI near 46 suggests neutral momentum, leaving ADA price range-bound until buyers or sellers break the wedge pattern.

Why It Matters

Bitcoin’s $4 trillion market has so far remained mostly untouched by DeFi.

Cardano’s push to integrate Bitcoin could mark the first serious attempt to unlock that pool of capital.

Instead of being limited to storing and transferring value, Bitcoin could become fully usable in yield-bearing ecosystems.

For Cardano, this isn’t just a technical integration but a gateway to billions in fresh liquidity. The scale of that liquidity has the power to shift DeFi’s growth ceiling far higher than Ethereum alone.

If realized, it would be the moment Bitcoin stops sitting outside finance and starts powering it.

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