Charles Hoskinson, the co-founder of Cardano, has refuted rumors circulating about the abandonment of the network's Hydra layer 2 scaling project. In a statement to X on March 18, the CEO of IOHK confirmed that the developer team has not given up on the project, labeling claims of its abandonment as "pure FUD," or fear, uncertainty, and doubt. Hydra, a Cardano-based protocol launched in May 2023, aims to enhance transaction processing capabilities and reduce transaction costs on the blockchain as part of Cardano's "Basho" roadmap focused on scaling.
Contrary to recent claims, Hoskinson clarified that Cardano has not moved away from Hydra, countering assertions made in a video uploaded by YouTube channel The Cryptoviser on March 17. The video suggested a shift in focus towards integration with Hyperledger Firefly, a scaling solution geared towards providing enterprises with a technology stack for building Extended Web3 applications, announced on March 13. Hoskinson addressed the rumors directly on X, assuring his followers that the team remains committed to Hydra's development, emphasizing the efficiency, proactivity, and community engagement surrounding the project.
This is not the first time Hoskinson has defended Hydra against what he perceives as "FUD." In October, he released a video promoting Hydra's features as a scaling solution for Cardano amid criticisms about network scaling. Hoskinson reiterated that Cardano operates on a transaction-by-transaction system rather than a transactions per second (TPS) model, emphasizing Hydra's role in enabling developers to build decentralized applications (DApps) for Cardano through middleware development. On March 18, Hoskinson once again addressed what he described as a "wave of FUD," referring to concerns raised about Cardano's partnership with World Mobile and its expansion roadmap.
Despite recent scrutiny, Cardano's decentralized finance (DeFi) total value locked (TVL) has seen growth this year, reaching an all-time high of $520 million on March 14, according to DefiLlama data. However, Cardano still trails behind competitors Ethereum, Tron, BNB Smart Chain, and Solana, which boast significantly higher TVL figures, reflecting ongoing challenges and opportunities for the network's development and adoption.
