Rich by Coin

Galaxy Digital CEO Mike Novogratz warned that XRP and Cardano must demonstrate actual utility as the crypto market shifts beyond hype toward assets with tangible business value. This assessment came during a discussion with Galaxy’s Head of Research, Alex Thorn, where Novogratz challenged the survival prospects of the two tokens amid crypto’s ongoing evolution. He noted that a 1-3 year window could determine winners and losers, with the market increasingly scrutinizing assets for real-world utility rather than narrative appeal.

XRP remains highly valued despite questions about on-chain activity. Specifically, XRP’s current market dynamics include a market cap cited around $115 billion and a ranking in the top tier, while Cardano sits lower in the rankings with a valuation in the $13-14 billion range. Active addresses suggest differing adoption momentum, with XRP showing roughly 16,704 addresses and Cardano around 19,000. By comparison, Solana continues to report millions of active users, highlighting divergence in network activity across major chains.

Novogratz highlighted the need for business-oriented models, pointing to Hyperliquid as an example of value-based token economics. He described a model where a decentralized exchange earns real revenue and destroys a large share of profits via token buybacks, aligning token holder interests with equity-like economics. He argued that traditional finance concepts could translate into crypto, with conventional finance principles expected to underpin future tokenized ecosystems. The broader implication is that exchanges and wallets could evolve into neobanks, offering investment products, tokenized assets, and stablecoins over time.

The veteran investor warned that projects lacking viable business models may underperform as the market matures, reminding readers that regulatory and market dynamics will influence adoption. He also noted that XRP’s recent entrance into the U.S. spot ETF landscape and the asset’s price movements reflect evolving demand and valuation pressures, alongside Cardano’s ongoing valuation pressure and adoption gaps. Overall, the evolution signals a shift toward assets with demonstrable utility and revenue-generating potential, rather than hype-driven narratives.