Novogratz questions long-term relevance of XRP and Cardano
Mike Novogratz, CEO of Galaxy Digital, has raised doubts about whether XRP and Cardano can keep pace with the crypto industry’s next phase of growth.
Speaking in an interview with Galaxy’s chief of research Alex Thorn, Novogratz said both projects must prove they are more than “fan favorites”, reports Cryptopolitan.
In his view, crypto is moving away from hype-driven valuations toward fundamentals like usage, revenue and real economic impact. Tokens that are not positioned as monetary assets, like Bitcoin, will increasingly be judged as operating networks or businesses. That shift puts pressure on large-cap assets whose valuations remain high despite limited onchain activity. Novogratz framed the issue as one of survival, not popularity. He questioned whether strong communities alone are enough in a maturing market.
Strong communities but limited onchain activity
Both XRP and Cardano have some of the most loyal user bases in crypto, something Novogratz acknowledged openly. However, he argued that loyalty does not automatically translate into sustained network usage. Cardano founder Charles Hoskinson has maintained a committed community, but Novogratz said the blockchain still sees relatively low real-world activity. XRP, designed for fast and cheap cross-border payments through RippleNet, has found some institutional use, yet critics continue to question whether that usage justifies its valuation.
According to CryptoQuant data, XRP has around 16,700 active addresses, while Cardano has just over 19,000. These figures pale in comparison to newer ecosystems that attract far higher daily engagement. For Novogratz, this gap highlights the challenge both networks face.
Market valuations clash with usage trends
The disconnect becomes more pronounced when market capitalization is taken into account. XRP is valued at nearly $115 billion, ranking fifth among all cryptocurrencies, while Cardano sits around $13–14 billion near the top 15. By contrast, Solana, which consistently records millions of active users driven by DeFi, memecoins and trading activity, has a market cap of about $72 billion.
Novogratz pointed to platforms like Hyperliquid as examples of where the industry may be heading. Hyperliquid generates real revenue and uses profits to repurchase its tokens, a model closer to traditional equity markets. He suggested that crypto assets will increasingly be expected to function this way. In that environment, networks without clear economic engines may struggle to justify their place.
Recently we wrote that XRP rose to $1.89, gaining 0.82%, as strength in Bitcoin and Ethereum lifted overall sentiment across the crypto market.
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