Charles Hoskinson Predicts Bitcoin DeFi Will Dominate Crypto Within 3 Years

Charles Hoskinson, the founder of Cardano, has made a bold statement about the future of decentralized finance (DeFi) within the Bitcoin ecosystem, predicting that Bitcoin-based DeFi will outpace all other DeFi projects in the next two to three years.

In a YouTube video released on November 27, Hoskinson shared his optimistic outlook on Bitcoin DeFi and provided an ambitious price forecast for Bitcoin. He also introduced a new model for bridging Bitcoin to decentralized finance, without the need for centralized exchanges.

“I’ve been deeply involved in the Bitcoin space from the beginning, and it’s a major reason I’m here today. Bitcoin has been a huge part of my journey,” Hoskinson stated. Reflecting on the early limitations of Bitcoin, he acknowledged its growth, describing it as transitioning from a “sleeping giant” to “an awakened giant” that now surpasses Solana and Ethereum in size by four times.

Looking forward, Hoskinson predicts that Bitcoin’s DeFi ecosystem will experience explosive growth in the next 24 to 36 months. He believes this surge will be driven by Bitcoin’s unmatched scale and liquidity, eventually making it the dominant force in the DeFi space.

Hoskinson also highlighted the increasing global interest in Bitcoin, with governments discussing the idea of strategic Bitcoin reserves. “I am confident that Bitcoin will reach anywhere from $250,000 to $500,000 within the next 12 to 24 months,” he explained, attributing this to the influx of investment and growing global interest in Bitcoin.

He added, “Bitcoin is the internet’s store of value, and now, with its DeFi layer, it is poised to remain in that role for the foreseeable future.”

Hoskinson also shared how Cardano’s network can bring Bitcoin into DeFi through a new “DeFi mode.” By wrapping Bitcoin into a token on Cardano, Bitcoin holders will be able to participate in DeFi applications, trade on decentralized exchanges, use yield-generating instruments, and retain control of their private keys.

In October, a team of Cardano developers announced a new Cardano-Bitcoin bridge powered by the Grail protocol. According to Hoskinson, this bridge could be a crucial step in unlocking DeFi applications backed by Bitcoin, offering secure, Bitcoin-supported decentralized finance solutions.