Published: December 31, 2025
Galaxy Digital CEO Mike Novogratz issued a pointed challenge to XRP and Cardano (ADA) in late 2025, emphasizing that both projects must show tangible business value to survive in an evolving cryptocurrency landscape. With XRP trading at $1.87 and ADA at $0.355, his comments highlight a growing divide between community-driven tokens and those generating measurable economic activity.
Novogratz’s Core Message: Utility Over Hype
In discussions with Galaxy Research head Alex Thorn, Novogratz questioned the long-term viability of projects relying primarily on loyal communities:
- Strong followings alone may not suffice as markets mature.
- Tokens need to function like traditional businesses with revenue and real-world use.
- The next 1-3 years will separate sustainable projects from others.
He praised community resilience but stressed evolving investor expectations.
Current Market Position of XRP and Cardano
Both assets face valuation pressure despite significant rankings:
- XRP: $1.87 (market cap ~$113 billion, rank #5).
- Cardano (ADA): $0.355 (market cap ~$12.8 billion, rank #12).
- Year-to-date: Mixed performance with notable drawdowns from earlier highs.
On-chain metrics show relatively modest daily active addresses compared to high-throughput competitors.
Challenges Highlighted for XRP and Cardano
XRP: Payments Narrative vs Daily Activity
Ripple’s focus on cross-border settlements drives XRP’s vision:
- RippleNet adoption by financial institutions continues.
- Recent U.S. spot ETF approvals brought inflows.
- Critics note organic token usage remains lower than valuation suggests.
Cardano: Research-Driven Approach vs Adoption Pace
Cardano emphasizes peer-reviewed development:
- Plutus upgrades and governance milestones in progress.
- Focus on sustainability and academic rigor.
- Real-world deployments growing slowly relative to faster ecosystems.
Novogratz’s Vision for Crypto’s Future
The billionaire investor foresees structural changes:
- Platforms evolving into full-service digital banks.
- Tokens valued like equities with revenue sharing.
- Examples like Hyperliquid showing buyback-driven economics.
Projects demonstrating clear business models gain favor.
What XRP and Cardano Need to Deliver
To address the critique:
- Increased transaction volume and enterprise integration.
- Measurable revenue or value accrual for holders.
- Broader ecosystem growth beyond community support.
Conclusion
Mike Novogratz’s caution to XRP ($1.87) and Cardano ($0.355) reflects a maturing market prioritizing utility over narrative. As 2026 approaches, both projects have opportunities through ongoing developments and institutional interest. Success will depend on translating vision into widespread, practical adoption.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are highly volatile.
