[DigitalToday reporter Yoonseo Lee] Charles Hoskinson (찰스 호스킨슨) has rated Cardano's RealFi as a key service to lift both total value locked (TVL) and on-chain transactions on the network.

On July 15 local time, blockchain media outlet The Crypto Basic reported that he sees RealFi as able to materially expand Cardano's DeFi ecosystem.

Hoskinson explained that RealFi's structure itself leads to an increase in TVL. When users deposit assets into the protocol's smart contracts, the funds remain locked while generating returns, and those returns are then distributed back to participants. Deposits and withdrawals, as well as yield distribution, all create on-chain transactions in the process, he argued, which can also raise network activity.

The remarks came after the phase-one RealFi testnet secured early participation quickly. Hoskinson earlier called the project's start a "wonderful start". Pioneer season metrics released by the RealFi team showed more than 1,000 people participated in the testnet, with nearly 500 verified wallets actively taking part in phase one. X, formerly Twitter, followers also topped 2,000 in just over a week, while new participants on the Discord server increased by more than 420.

The RealFi team did not view these figures as simply an increase in users. The team said the trend shows growing interest in developing transparent stablecoins backed by real-world assets.

The project's direction also differs somewhat from existing trading-focused DeFi. Cardano's RealFi aims to use blockchain liquidity to connect DeFi with real-world financial services such as microfinance and small and medium-sized business loans. It focuses on creating practical blockchain use cases beyond trading while offering a new route to communities with low access to financial services.

In the initial test phase, users can test a flow of exchanging test assets for USDr, depositing USDr to receive sUSDr, and later redeeming it. Hoskinson said RealFi is making progress toward a mainnet launch, and he sees a move to mainnet as able to support growth in Cardano DeFi and broader real-world use.

Cardano's TVL currently stands at about $71.56 million. That is far below Ethereum's $41.09 billion and Solana's $4.91 billion, and attention is expected to focus on whether RealFi can actually drive an expansion in liquidity.

Wonderful start to RealFi's testnet. https://t.co/nHi12wJJQ5