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Cardano founder Charles Hoskinson has argued that the network remains financially strong despite its recent decline in the cryptocurrency market rankings.
According to him, Cardano’s on-chain treasury continues to generate enough funding to support the ecosystem’s long-term growth.
Speaking during an interview on The Starting Block, Hoskinson acknowledged that Cardano’s market cap has fallen to around $6 billion, pushing the cryptocurrency out of the top 10 by market value. Nonetheless, he stressed that the network still has sufficient financial resources to fund more than $100 million in ecosystem development this year.
Treasury Generates Funding for Ecosystem Development
Hoskinson explained that Cardano’s treasury is financed through the blockchain’s economic model, which channels a portion of network revenue and protocol inflation into an on-chain treasury. Through Cardano’s governance system, the community can then vote on how those funds are allocated to support the ecosystem.
According to him, the treasury can finance a budget exceeding $100 million this year. The funding could support a wide range of initiatives, including software development, infrastructure upgrades, research, developer tools, educational programs, and other projects designed to strengthen the Cardano network.
Dozens of Companies Already Receiving Treasury Funding
Hoskinson also emphasized that the treasury is already delivering tangible results. He revealed that more than three to four dozen companies have received funding from Cardano’s treasury to contribute to the ecosystem.
These independent organizations are building products, enhancing the protocol, developing decentralized applications, and expanding Cardano’s infrastructure. As a result, the network no longer depends solely on Input Output Global (IOG), the company that originally developed Cardano, to drive innovation.
Although Hoskinson did not identify the funded organizations during the interview, several treasury allocations are publicly known.
Notably, Input Output Global (IOG) is among the beneficiaries. Earlier this year, the company submitted nine separate treasury proposals seeking nearly $50 million in funding, with only a few proposals failing to secure community approval.
Meanwhile, EMURGO received approximately $793,000, equivalent to 3.3 million ADA, to oversee Cardano’s presence at the TOKEN2049 conference. However, that responsibility has since been transferred to the Cardano Foundation after EMURGO stepped down from Pentad.
Hoskinson Expects Cardano to Return to the Top 10
Despite its financial strength, Cardano remains outside the cryptocurrency market’s top 10. The digital asset currently ranks as the 16th-largest cryptocurrency, with a market capitalization of approximately $5.89 billion and a trading price of $0.1616.
Even so, Hoskinson remains optimistic that Cardano will regain a top-10 position before the end of the year. Whether that prediction materializes, however, remains uncertain as the broader cryptocurrency market continues to evolve.
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