Cardano founder Charles Hoskinson has made a bold prediction: decentralized finance (DeFi) on the Bitcoin network will surpass all other crypto ecosystems within the next two to three years. In a YouTube video posted on November 27, Hoskinson outlined Bitcoin’s growing potential in DeFi, pointing to its unparalleled scale and liquidity.
“I started in the Bitcoin space and I loved Bitcoin. Bitcoin has been a big part of my life, and the only reason I’m here today is because Bitcoin exists,” Hoskinson said. Despite his early frustrations with Bitcoin’s pace of innovation, he now believes the network is poised to become the dominant force in DeFi.
A New Era of Bitcoin DeFi
Hoskinson highlighted a pivotal shift in Bitcoin’s trajectory: “Bitcoin went from a sleeping giant in an innovation coma to an awakened giant that is four times the size of Solana and Ethereum combined.” He confidently stated that DeFi on Bitcoin will eclipse all other ecosystems within 24 to 36 months, driven by its immense liquidity and scale.
Adding to this, he predicted that Bitcoin’s price could soar to between $250,000 and $500,000 within the next 12 to 24 months. He attributed this forecast to growing investment inflows and increasing interest in Bitcoin as a strategic reserve asset, with governments entering discussions on holding Bitcoin reserves.
Hoskinson also unveiled a novel approach to bringing DeFi capabilities to Bitcoin via Cardano’s network. He introduced the concept of “DeFi mode,” which allows users to bridge their Bitcoin to a wrapped token on Cardano. This integration enables Bitcoin holders to trade on decentralized exchanges, use yield-generating instruments, and maintain control of their private keys—essentially unlocking Bitcoin’s DeFi potential without relying on centralized exchanges.
The Grail Protocol: A Key to Bitcoin DeFi
In October, a development team supporting Cardano announced the launch of a Cardano-Bitcoin bridge using the Grail protocol. Hoskinson emphasized that this bridge could be the first step in providing DeFi applications secured by Bitcoin’s robust network.
“Bitcoin is the store of value for the internet, and it will remain in that role for the foreseeable future now that it has a DeFi layer,” Hoskinson said, signaling a new chapter in Bitcoin’s evolution.
