Cardano: A Closer Look at the Trump Reserve Token and Its Unique Approach to TVL

The Cardano Foundation prioritizes real-world adoption and utility over Total Value Locked (TVL) as a measure of growth.

Key Takeaways:

• Adoption Over TVL: Cardano Foundation CEO Frederik Gregaard prioritizes real-world use cases as a key adoption metric, aiming for fewer than 50% of on-chain transactions to be purely value transfers.
• Trump’s Crypto Reserve Mention: U.S. President Donald Trump referenced Cardano’s ADA token as part of the nation’s potential crypto reserve.
• Cardano’s Financial Structure: Gregaard also clarified the financial relationships between the Cardano Foundation, Emurgo, and Charles Hoskinson’s IOG (Input Output Global).

Cardano’s ADA token has seen a surge in trading volumes, averaging $720 million daily in February and surpassing $1.4 billion in March.

The spike was driven by a social media post from U.S. President Donald Trump, who mentioned ADA as one of the tokens to be included in the nation’s strategic crypto reserve.

Although Cardano is currently in the spotlight, the layer-1 blockchain has been steadily evolving into a major force in crypto since its launch in late 2017.

Adoption Metrics

Cardano’s ADA token holds a $25.6 billion market cap, but its underlying network activity is even more noteworthy. Google data indicates that the Cardano blockchain hosts over 5 million unique wallets and 1.3 million delegators, with thousands of new wallets created daily.

Cardano’s Approach to Blockchain Utility

Cardano’s Total Value Locked (TVL) currently stands at $329 million, but Cardano Foundation CEO Frederik Gregaard argues that this metric is overemphasized in the crypto space.

Instead, he highlights "non-value transactions"—real-world applications of blockchain beyond financial activity. These include minting decentralized IDs, tracking metadata, and recording documents, areas where Cardano is thriving.

"I'm fighting to ensure that 50% of the activity is a non-value transaction," Gregaard stated.

 

Real-World Impact: Veritree & SERPRO Partnerships

One standout example is Cardano’s partnership with Veritree, where the community donated over 1 million ADA tokens to fund the planting of 1 million mangrove trees in Kenya—with each donation verified on the blockchain.

Additionally, the Cardano Foundation recently announced a deal with SERPRO, Brazil’s largest state-owned IT company, to promote blockchain adoption across South America. SERPRO processes 33 billion transactions annually for 90% of Brazil’s federal administration, and as part of the collaboration, 8,000 employees will receive blockchain training.

A Different Philosophy from Solana & Layer-2 Networks

Unlike Solana and Layer-2 networks that emphasize TVL, memecoins, and NFT hype, Cardano’s growth strategy focuses on long-term adoption and utility.

For context, Solana’s TVL skyrocketed from $2.2 billion to over $10 billion in 2024, while Cardano’s increased more modestly from $445 million to $537 million in the same period.

DeFi on Cardano: A Thriving Ecosystem

Despite its emphasis on real-world use cases, Cardano still maintains a strong DeFi presence, with a growing ecosystem operating beneath the surface.

Cardano’s native decentralized exchange (DEX), Minswap, has seen significant growth, reaching a cumulative trading volume of $3.4 billion this month. In December alone, Minswap recorded $271 million in trading volume, according to DefiLlama.

The blockchain also hosts several lending protocols, including Liqwid, Lenfi, and Optim Finance, with total value locked (TVL) in Cardano’s lending sector surpassing $116 million.

A Different Vision for Growth

Despite this DeFi expansion, Cardano Foundation CEO Frederik Gregaard remains committed to ensuring that non-financial transactions exceed 50% of blockchain activity. He argues that this aligns with the Cardano Foundation’s non-profit ethos, even if it means missing out on the hype-driven growth seen in memecoins and speculative assets.

"The intent of having a non-profit was that you can optimize decision-making based on 10 years. It's different than if you optimize decision-making for tomorrow," Gregaard explained.

 

Governance Tensions: Cardano Foundation vs. IOG vs. Emurgo

Cardano’s governance structure is split between three key entities:

• The Cardano Foundation (a non-profit focused on long-term strategy).
• Charles Hoskinson’s IOG (Input Output Global, the original developer of Cardano).
• Emurgo (Cardano’s commercial and venture-building arm).

This dynamic has led to occasional friction between the non-profit and the commercial entities driving Cardano’s development.

In December, an anonymous Cardano community member highlighted these tensions in an email, suggesting the Cardano Foundation’s recent surge in activity was part of a strategic effort to challenge Charles Hoskinson, IOG, and the broader governance roadmap.

"CF’s recent burst of activity is part of a larger strategic play—an attempt to undermine Charles, IOG, Intersect, and the broader governance roadmap," the email stated.

Hoskinson acknowledged the challenges but found some merit in the whistleblower's claims, stating on X, "It's been a long and difficult road, but I do agree with some of the sentiments."

Meanwhile, Gregaard took a more diplomatic stance on the perceived tensions between the entities.

"There’s no monetary exchange between us, but we collaborate closely," he explained. "For example, we sometimes attend conferences together and share a booth. That’s about as far as our affiliation goes, which is quite different from foundations like Ethereum or Tezos, where they have direct control over the treasury and fund distribution."

Gregaard also highlighted the Cardano Foundation’s distinct role in the ecosystem:

"On the other hand, we serve as the liability umbrella for the community and the blockchain. This means we engage directly with regulators such as the SEC, CSDC, and FMA, and I personally negotiated MiCA with the European Parliament."