XRP, Cardano need more than trusted communities to keep pace with rivals
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Galaxy Digital CEO Mike Novogratz emphasized that XRP and Cardano need to show real value to maintain their values. He believes that crypto is moving from narrative-driven tokens to commercial tokens.
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According to Galaxy Digital CEO Mike Novogratz, tokens like XRP and Cardano (ADA) that rely heavily on community trust must prove real-world utility or risk lagging strong-performing rivals in future market cycles.
He made his comments in a recent interview with Galaxy Digital's head of firmwide research, Alex Thorne, on the 2026 outlook for Bitcoin, crypto, tokenization, real-world assets and artificial intelligence.
Novogratz believes that the crypto market is moving from tokens built on ideas to real business fundamentals. As there are more elections each cycle, engaging the community is more difficult. Brands that survive only because of loyal communities may lose their profitability and measurable value.
He says the winners are blockchain and bitcoin, which are business-based tokens, platforms that people really build on.
Because the moment you're not money, Bitcoin is money, then you're just a business. The price is very low.
“Can Ripple hold it together? Can Cardano hold it together?” Novogratz asked during the interview. Who became the money and who were the businesses that are valued now, well, how much are you going to make me?”
“Charles Hoskinson, bless his soul, kept the Cardano community on a blockchain that people rarely use,” Novogratz said. Can you keep it together when there are so many options?”
Novogratz pointed to HyperLiquid as an example of a token with a clear value. The exchange burns 98% of its profits by buying back and liquidating tokens, creating what it describes as an equity investment.
“I think that's the future of tokens,” he said. “You'll see good tokens trade as well as good real-world assets.”
The Galaxy CEO predicted a one- to three-year turnaround for the crypto industry, with crypto wallets and exchanges moving to neobanks offering stablecoins, tokenized equities and money market products.
