- The Cardinal Protocol enables the use of Bitcoin in Cardano Defi without storage and strengthens AdA courses.
- Wrapped Bitcoin and Ordinals on Cardano support Lending, Staking and Crisschain use with Ethereum and Solana.
Cardano will connect Bitcoin to its defi system by introducing the cardinal protocol. The new system enables the safe use of Bitcoin within Cardano’s infrastructure.
Ada’s course rose when the market reacted to this integration. The founder Charles Hoskinson announced Cardinal together with new developments for the Multi-Chain-Wallet Lace.
Cardinal Protocol enables absolutely trustworthy Bitcoin-DEFI
Cardanos Cardinal protocol enables Bitcoin Utxos to pack in assets that can be used in Defi on Cardano. Loud Romain Pellerin, CTO from IOGthese packaged tokens are linked to BTC 1: 1. You can lend, use and borrow Bitcoin in the Cardano network without having to trust a central storage.
Welcome to the first Bitcoin DeFi protocol developed for Cardano https://t.co/CoYvrYnIfI
— Charles Hoskinson (@IOHK_Charles) June 9, 2025
The system minimizes the prerequisites for trust by only needing an honest operator among many without the need for a majority consensus like in federated bridge models. Cardinal uses Musig2, a cryptographic multiple signature method to secure transactions. It also implements confirmation maintenance times to protect against chain residents and thus reduces cross -chain weaknesses.
Peller said that the protocol is ready for use and has already unpacked and unpacked his first Bitcoin order in the Mainset, but it is not yet ready for production. Further work is planned before the publication of 1.0.
Cardinal uses BitVMX to enable calculations outside the Bitcoin chain and at the same time keep it decentralized. This off-chain layer supports Bitcoin Native Operations and is directly integrated with the Smart Contract functions of Cardano. BitVMX enables programmable and verifiable interactions between the chains.
Ordinal support and crisschain benefit expand cardinal applications
Cardinal also supports Bitcoin Ordernals, which you can pack and use in Defi. They can be borrowed, auctioned or staked out, their origin and metadata be preserved. This makes the growing market for ordinals even more useful by integration into the EUTXO-based smart contract platform from Cardano.
In contrast to previous Wrapped BTC models that were bound to individual chains or centralized storage, cardinal assets can be used across several chains, including Ethereum, Solana and Avalanche. The PEG-in and PEG-out processes are fraud-resistant and transparent, so that their assets are secure.
This is part of the Vision von Cardanoto be a decentralized financial operating system. Hoskinson said that these upgrades are part of a wider multi-chain strategy to combine blockchain communities and at the same time maintain security and decentralization. He said it is ready for use, but not yet ready for production.
Ada course reaction and market outlook
According to the announcement of the Cardinal Protocol, the ADA course rose by 5.2 % on June 10, whereby the trading volume increased by 40 % according to coinmarket cap.
The token is currently trading at $ 0.698 and has a market capitalization of $ 24.62 billion. Analysts observed that ADA The resistance at $ 0.71 tests, supported by the narrowing Bollinger bands, which indicates that an outbreak could be imminent.
The technical indicators remain neutral, the relative strength index (RSI) is 48.19. The simple gliding 20-day average (SMA) is $ 0.7085 and represents direct resistance. A sustainable outbreak via this brand could open the way towards the $ 0.80 zone, while a decline below $ 0.62 could trigger a revival of the deep stalls from the beginning of 2024.
Kryptoanalyst Ali Martinez noted An that a final course over $ 0.71 would confirm a rally that ADA could possibly drive towards the $ 1 mark. According to the news about the integration, the mood among investors also revolved towards optimism, with predictions that Cardinal could act as a catalyst for the next price cycle of ADA.
Despite this dynamic, the defi activity of Cardano has decreased. Data from Defill show that the total value of the network (TVL) from $ 415 million dropped to $ 334 million on June 10 in May.
Hoskinson has not given a schedule for the complete introduction of the cardinal upgrade, but emphasized that ongoing work on these products could revive the Defi landscape of Cardano.
In this context quit Hoskinson too The upcoming XRP support for the Lace Walletan . The lace developed by IOG was introduced in April 2023 and is located on a multi-chain integration path. Bitcoin-Testnet support was added in June 2024, and XRP is the next asset that joined the wallet’s ecosystem.
These strategic additions show the efforts of Cardano to position yourself as a central hub for cross -chain finances. The introduction of the protocol and the expansion of the lace wallet indicate a broader goal of combining Bitcoin, Cardano and other networks in a single defect environment.
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