Mike Novogratz Says XRP Risk Losing Relevance Without Real-World Utility

Mike Novogratz, CEO of Galaxy Digital, has warned that Cardano and XRP risk losing relevance in the crypto market if they fail to deliver clear real-world utility. 

He made this statement during a recent conversation with Galaxy’s Head of Firmwide Research, Alex Thorn. Their discussion covered topics such as real-world asset (RWA) tokenization, artificial intelligence (AI), and evolving valuation frameworks.

In this context, Novogratz cited XRP and Cardano as examples of networks approaching a critical inflection point.

New Shift in Crypto Market

According to Novogratz, the crypto market is gradually transitioning away from narrative-driven assets. In his view, this comprises tokens whose value relies heavily on community loyalty, branding, and long-term promises rather than on immediate economic output.

Per his assessment, XRP and Cardano have historically benefited from strong, committed communities, but that alone may no longer be sufficient.

Instead, he argued that the next market cycle will increasingly favor “business-driven tokens”. These are projects that generate tangible economic value, support real-world use cases, and produce sustainable revenue or profits for holders.

He stressed that investors are increasingly evaluating blockchains less as ideological experiments and more as businesses, with some users asking a fundamental question: “How much value does this network actually generate?”

Cardano and XRP Could Become Irrelevant Without Real-World Utility

Novogratz stated that this market shift will not happen overnight. He expects a structural transformation to unfold over the next one to three years. During this period, projects that fail to demonstrate meaningful utility or steady cash flow may struggle to retain investor attention, regardless of how loyal their communities remain.

He specifically mentioned XRP and Cardano, questioning whether both networks can adapt as new alternatives emerge. His comments framed the issue as a test of whether these ecosystems can evolve beyond narratives driven primarily by community hype.

While acknowledging Cardano founder Charles Hoskinson’s role in maintaining a resilient blockchain and strong community, Novogratz stressed that the network is still underutilized.

Users Fire Back

As expected, Novogratz’s remarks sparked backlash across the crypto community, with many users questioning his credibility. XRP community figure Alex Cobb highlighted Novogratz’s past bullishness on Terra (LUNA), recalling that he was so supportive of the project that he even got a tattoo in its honor—before its collapse in 2022.

Cobb used this example to challenge Novogratz’s authority to assess the long-term prospects of networks like XRP, which he argued has delivered substantial gains over the past 13 years.

Other community members emphasized XRP’s expanding real-world utility, noting its practical applications in cross-border payments and growing adoption as a treasury asset. They also pointed out XRP’s increasing role in decentralized finance, citing platforms such as Axelar and Flare Networks as examples of adoption.

I guess only time will tell. XRP has great utility, unlike BTC and its still around tooday.

— Gio🍀☝️ (@GIO8DIO) December 27, 2025

Similarly, Cardano is advancing its utility narrative. The launch of Midnight, Cardano’s privacy sidechain, represents a significant step toward attracting developers and enterprises seeking private smart contract functionality. This further enhances the network’s long-term value proposition.