Large-cap assets like Ripple’s XRP and Cardano (ADA), which depend largely on committed communities, need to distinguish themselves with real-world use cases or risk lagging behind stronger-performing competitors in future bull market runs, according to Mike Novogratz. Billionaire Mike Novogratz has revealed that community loyalty alone cannot guarantee long-term viability in the evolving digital asset landscape. Consequently, projects must demonstrate tangible utility to withstand the 2025 market cycle. During a recent discussion with Alex Thorn, Head of Firmwide Research at Galaxy Digital, Novogratz claimed that the cryptocurrency market is shifting from tokens that rely on hype to those with real market fundamentals.
As cycles change, only tokens with profits and tangible value will survive, while community-driven ones fade out after initial excitement. Although Novogratz described the XRP Army’s refusal to bail during the protracted Ripple-SEC lawsuit as a testament of strength, not delusion, he still expects the real winners to be Bitcoin and business-driven blockchain projects that people build on. Because the moment you’re not money, Bitcoin is money, then you’re just a business. The valuations are a lot lower, he remarked. Charles Hoskinson, bless his soul, has kept the Cardano community with a blockchain that people don’t really use a lot. He’s had a strong community just like XRP.
Novogratz cited Hyperliquid as an example of an asset with measurable value. The high-risk leveraged trading decentralized exchange burns 98% of its profits by buying back and destroying tokens, creating what the Galaxy boss characterized as an equity-like investment. “I think that’s the future of tokens,” Novogratz observed. “You’re going to see good tokens trade well, just like good real-world assets.” According to him, the crypto industry will undergo a one-to-three-year transformation period, with crypto wallets and exchanges becoming neobanks that offer stablecoins, tokenized equities, and money market products.
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