XRP Gets Unexpected Praise Over Ethereum, USDT & USDC from Cardano Founder Charles Hoskinson — Here’s Why

Charles Hoskinson Backs XRP DeFi Surge, Predicts It Could Outpace Ethereum by 2027 

Cardano founder Charles Hoskinson has sparked fresh debate in the crypto space after making unusual positive remarks about the XRP ecosystem, comparing its trajectory and positioning against major players like Ethereum (ETH) and stablecoin issuers Tether (USDT) and Circle (USDC).

The comments stand out largely because relations between the Cardano and XRP communities have historically been strained. The two camps have often clashed over core issues such as decentralization, governance, and ecosystem design. 

Against this backdrop, Hoskinson’s latest tone feels notably different, less combative and more analytical.

A major focus of his assessment is XRP’s decentralized finance (DeFi) potential. Hoskinson suggested that XRP-based DeFi could become one of the fastest-growing segments in crypto by 2027, potentially expanding at a quicker rate than Ethereum’s DeFi ecosystem. 

While Ethereum remains the dominant force in DeFi today, it continues to grapple with scaling limitations, congestion, and liquidity fragmentation across Layer 2 (L2) networks. 

In his view, newer ecosystems like XRP may benefit from starting smaller but growing faster due to a more streamlined and targeted design approach.

Charles Hoskinson Sees XRP as a Web2.5 Bridge Asset, Highlighting Its Hidden DeFi Potential Despite Past Criticism 

Hoskinson also framed XRP as a Web2.5 system, positioned between traditional finance and fully decentralized applications. 

Rather than competing directly with Ethereum’s broad smart contract ecosystem, he described XRP as a bridge layer optimized for payments, settlement, and institutional interoperability. This places it in a niche focused more on efficient value transfer than on general-purpose programmability.

Hoskinson further contrasted XRP with stablecoin leaders like USDT and USDC, noting that while stablecoins are essential to liquidity and trading activity, they remain closely tied to centralized issuers and conventional banking infrastructure. XRP, by contrast, was portrayed as a more neutral settlement asset designed to move value across networks without relying on fiat-pegged structures.

What makes his comments particularly striking is the context. Hoskinson has previously criticized aspects of XRP’s token distribution and governance, especially concerns around Ripple’s historical influence over supply. 

His previous onslaught didn’t stop there since he referred to XRP as a sleeping giant, acknowledging its scale, brand recognition, and potential relevance in future financial systems.

Therefore, his latest remarks is a change of tune, given that he acknowledges XRP’s potential role in the next phase of crypto adoption. This is a welcome move since coexistance in the crypto/blockchain sector is of the essence.