CryptoFly has put Sui and Cardano at the center of an emerging contest for Bitcoin-linked DeFi liquidity, arguing that Sui may have the faster route to institutional capital while Cardano has spent longer developing more decentralized alternatives.
The stakes are substantial: Bitcoin is valued at more than $1 trillion, while the video cites total DeFi value locked at roughly $76 billion.
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The central obstacle is custody. Traditional bridges typically lock assets under validator, oracle or multisig controls, creating large, concentrated targets for attackers. The host said more than 20 bridge exploits had occurred in the prior six months, resulting in over $400 million in losses across multiple chains.
Sui’s Hashi targets Bitcoin liquidity with layered controls
Sui recently launched the Hashi testnet for Bitcoin DeFi. Under the proposed model, Bitcoin remains locked on the Bitcoin testnet while users receive HBTC on Sui, a token intended to be backed one-to-one by the underlying BTC and usable across Sui DeFi applications.
Linda questioned the “bridgeless bridge” label, noting that the system still resembles a wrapped-asset arrangement. The claimed distinction is its security model: Hashi uses both its own validator network and an independent guardian group to verify Bitcoin transactions. “Before any Bitcoin can even move, both sides have to approve it,” the market aficionado said.
Hashi has reportedly attracted more than 25 institutional partners and projects, including BitGo, Ledger, Blockdaemon and Cumberland. CryptoFly cautioned that partnership announcements do not always indicate deep product integration, but said the roster could provide a meaningful liquidity advantage when the platform reaches mainnet.
Cardano’s got multiple BTC DeFi projects, but less liquidity
Cardano’s approach is less concentrated.
Fluid Tokens is developing ByFrost, a trust-minimizing Bitcoin bridge that uses Cardano’s stake-pool network; the project has been in development for about two years and is live on testnet, according to the video. Other efforts include Z-Swap’s BTC Karma and IOG’s POGAN, which aims to support Bitcoin-backed lending, borrowing and credit markets.
That diversity may give Bitcoin holders more choices, but it also leaves uncertainty over which product will win liquidity. The host contrasted Sui’s cited $430 million DeFi Total Value Locked (TVL) with Cardano’s $62 million, despite describing Sui’s roughly $3 billion market capitalization as about half of Cardano’s.
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