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Cardano ADA: Midnight Protocol to Catalyze 10x DeFi Expansion According to Hoskinson

Cardano ADA: Midnight Protocol to Catalyze 10x DeFi Expansion According to Hoskinson

Author:
ADA News
Published:
2025-12-23 07:41:32
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[TRADE_PLUGIN]ADAUSDT,ADAUSDT[/TRADE_PLUGIN]

In a recent livestream, Cardano founder Charles Hoskinson addressed community concerns and laid out an ambitious vision for the network's future, centering on the transformative potential of the upcoming Midnight protocol. Hoskinson firmly dismissed the notion that Midnight—a privacy-focused sidechain and data protection-based blockchain—poses any risk to Cardano's core Layer 1 blockchain. Instead, he positioned it as a powerful complementary accelerator. His most striking projection was that Midnight's integration would directly lead to a tenfold expansion of Cardano's decentralized finance (DeFi) ecosystem. This statement, made in late 2025, signals a pivotal phase in Cardano's evolution beyond its foundational settlement layer into a more versatile and privacy-enabled multi-chain network. The core of Hoskinson's argument is that Midnight addresses a critical market need for confidential transactions and secure data sharing—a feature gap in the current transparent DeFi landscape. By providing a regulated, privacy-preserving environment for smart contracts and decentralized applications (dApps), Midnight is expected to attract a new wave of institutional and retail developers who require data protection for compliance or competitive reasons. This influx is predicted to dramatically increase the total value locked (TVL), user base, and diversity of financial products within the broader Cardano ecosystem. The protocol operates as a sidechain, meaning it leverages Cardano's security and finality while enabling specialized functionality, thereby strengthening the mainchain's utility and demand for ADA as the core staking and settlement asset. This development comes at a crucial time for Cardano, as it seeks to solidify its position in a competitive smart contract platform arena. Hoskinson's public confidence is a strategic move to align community expectations and attract builder momentum ahead of Midnight's full rollout. The projected 10x growth is not merely about scaling existing DeFi but about pioneering a new subset of confidential DeFi (often called 'DarkFi') within a compliant framework. If realized, this would significantly enhance Cardano's market valuation fundamentals by expanding its use cases and total addressable market. For ADA investors and ecosystem participants, Hoskinson's vision frames Midnight not as a divergent path, but as the key to unlocking the next major growth phase for the entire Cardano network.

Hoskinson Says Midnight Will Expand Cardano's DeFi Ecosystem by 10x

Cardano founder Charles Hoskinson has dismissed concerns that the upcoming Midnight protocol could weaken the network's Core blockchain. During a recent livestream, he projected a tenfold expansion of Cardano's decentralized finance ecosystem as a direct result of Midnight's integration.

"Midnight isn't a threat - it's an accelerator," Hoskinson stated, framing the development as complementary infrastructure rather than competitive technology. The protocol aims to enhance Cardano's capabilities while maintaining the security and decentralization principles of the primary chain.

Cardano’s ADA Struggles Near $0.36 as Downtrend Persists

Cardano’s ADA lingers near $0.36–$0.37, underperforming broader crypto markets amid a descending wedge pattern. Trading volume remains subdued at $250–350 million, reflecting cautious sentiment rather than conviction. The token’s 2–4% weekly decline underscores weak momentum, with resistance at $0.40 looming as a critical test.

Technical structure suggests controlled selling pressure, though a faint rebound hints at tentative base-building. Market participants await either a breakout or another leg down to confirm direction. For now, ADA’s fate hinges on whether it can escape the gravitational pull of its current range.

Hoskinson Urges Long Positions on Cardano DEXes, Predicts 100X Growth

Charles Hoskinson, founder of Cardano, has called attention to the undervalued state of Cardano's decentralized finance ecosystem. In a recent statement, he urged market participants to take long positions on Cardano-based decentralized exchanges (DEXes), predicting they could grow by 100 times.

The remarks came in response to a post by cardano stake pool operator YODA, which highlighted the performance of NIGHT, the native token of privacy-focused sidechain Midnight. Hoskinson's bullish outlook underscores growing confidence in Cardano's DeFi potential.

Cardano Tests Resistance Amid Market Pressure

Cardano (ADA) hovers NEAR a critical technical threshold at $0.3651, down 0.3% in 24 hours. The digital asset faces decisive momentum—a breakout above current resistance could signal trend reversal, while failure may prolong consolidation.

Market participants watch for volume confirmation. The absence of bullish catalysts leaves ADA vulnerable to broader crypto market sentiment, where institutional flows remain uneven.

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