Galaxy CEO Novogratz Warns XRP, ADA Risk Irrelevance Without Utility

Galaxy Digital CEO warns XRP and Cardano need real utility to stay relevant as crypto shifts from hype-driven to business-driven value.

Galaxy Digital CEO Mike Novogratz has raised concerns about the future of XRP and Cardano (ADA).

He believes both cryptocurrencies are overly reliant on community support and hype, instead of demonstrating real utility.

As the market shifts from hype-driven to business-driven valuations, Novogratz warns that XRP and ADA must prove their value to stay relevant.

Without tangible use cases, both projects could struggle to maintain their positions in the growing crypto ecosystem.

Shift from Hype to Business-Driven Valuations

Novogratz emphasized that the crypto market is transitioning from narrative-driven tokens to business-driven tokens.

In the past, tokens like XRP and ADA were able to thrive on hype and community loyalty.

However, the market is becoming more competitive, and investors are now focused on real business value and measurable outcomes.

Tokens that once gained high valuations simply due to their narrative now face the challenge of proving their utility.

Novogratz pointed out that only those projects that can demonstrate actual use cases and profits will thrive in the long term.

Projects without real-world applications may struggle to survive in this evolving market.

As more projects shift toward business-driven models, the pressure on tokens like XRP and ADA to demonstrate utility will grow.

Without real use cases, these tokens risk becoming irrelevant as the market moves toward more sustainable, profitable projects.

The Role of Bitcoin in Shaping Market Trends

Bitcoin, according to Novogratz, has established itself as a form of money, giving it a clear valuation framework.

This distinction sets Bitcoin apart from other cryptocurrencies like XRP and ADA, which are often treated more like businesses.

Bitcoin’s status as a monetary asset provides it with a solid foundation and clear valuation, unlike tokens that still rely on hype.

Novogratz questioned whether XRP and ADA could continue to generate investor interest in an environment where business fundamentals are crucial.

Investors are now focusing on assets with clear use cases and long-term potential. If XRP and ADA cannot demonstrate similar utility, they may struggle to attract sustained investment in the future.

Despite their strong communities, XRP and ADA face increasing pressure to prove their value. Their ability to adapt and offer real-world solutions will determine their future relevance in the market.

Related Reading: Ethereum Will Soon Beat Bitcoin, Galaxy Digital CEO Michael Novogratz Says

The Rise of New Token Models

Novogratz pointed to emerging tokens like Hyperliquid as models for the future. Unlike XRP and ADA, Hyperliquid focuses on rewarding token holders based on real business performance.

This approach, which is similar to equity in traditional finance, gives token holders more value tied directly to company profits.

He believes that the future of crypto will see more tokens aligning themselves with business principles.

Hyperliquid’s model of burning tokens based on company performance could set a new standard in the industry.

This shift from speculative to business-backed tokens is expected to shape the market over the next few years.

Looking ahead, Novogratz predicts that crypto exchanges and wallets will evolve into neobank-like platforms.

These platforms will offer stablecoins, tokenized assets, and financial products, which could further pressure underutilized blockchains. As the crypto market matures, only those with tangible utility will remain relevant.

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