Mike Novogratz, the CEO of Galaxy, believes that both XRP and Cardano (ADA) need to prove their value or risk a fall in market worth. He emphasized that, in the increasingly competitive crypto landscape, mere community loyalty won’t be enough to sustain their prices.
Demonstrate real-world utility or fade away, says Novogratz
In a recent interview, Novogratz expressed concern that XRP and Cardano are teetering on the edge, potentially heading for lower valuations. He pointed out that these cryptocurrencies must show genuine utility for users instead of just relying on community buzz. According to him, failing to adapt might significantly affect their asset prices. While both have enjoyed enthusiastic backing, he stressed that future market cycles will necessitate a strategic shift.
Novogratz mentioned that the crypto landscape is shifting from a focus on community excitement to prioritizing projects with substantial foundations. He raised the question of whether tokens buoyed by hype can sustain relevance when so many new options are available.
“Charles Hoskingson has done a commendable job keeping the Cardano community engaged, even if the blockchain itself isn’t widely utilized,” Novogratz noted. “He has a passionate following, much like XRP, but can he keep that momentum as options expand?”
Novogratz pointed out that numerous projects launched recently have made notable progress. He believes that the key to success lies in providing “clear value” to users, citing HyperLiquid’s efforts in buybacks and token burning as a good example. He also predicted that virtual asset service providers will soon engage in an arms race to position themselves as neobanks. Novogratz plans to rebrand traditional cryptocurrency exchanges to include money market products and tokenized stocks over the next three years.
A bold effort for real-world utility
Even though Cardano and XRP are often branded as community-oriented projects, both have made notable advancements in broadening their use cases. Cardano is expected to attract privacy-focused developers with its series of integrations in the Midnight project, focusing on digital identity and governance.
On the other hand, XRP has established a foothold in cross-border remittances and on-demand liquidity (ODL), managing to navigate legal challenges with the U.S. Securities and Exchange Commission (SEC). Ripple’s recent conditional approval to operate as a national trust bank hints at its role in aiding RLUSD with reserves management.
