XRP and Cardano Must Demonstrate Utility to Compete in Crypto Market
Key Insights
- Utility Over Hype: Galaxy Digital CEO Mike Novogratz stresses that XRP and Cardano must prove their real-world applications to maintain market standing.
- Shift to Business-Driven Tokens: The crypto landscape is transitioning from narrative-based to business-oriented tokens.
During a recent discussion with Alex Thorn, Galaxy Digital's Head of Firmwide Research, CEO Mike Novogratz highlighted the necessity for tokens like XRP and Cardano to demonstrate tangible utility beyond community loyalty to stay competitive. He argued that as the crypto market matures, it is shifting focus from speculative narratives to tokens with solid business fundamentals. Novogratz noted that tokens solely reliant on community support might fall behind those offering measurable value and profitability.
He emphasized that the future belongs to business-driven tokens and robust blockchain platforms, alongside Bitcoin, which is increasingly viewed as digital money. "Because the moment you're not money, Bitcoin is money, then you're just a business. The valuations are a lot lower," Novogratz stated. He questioned whether Ripple and Cardano can sustain their community-driven models amidst increasing competition and options.
Novogratz cited Hyperliquid as an example of a token with clear utility, describing its profit-burning mechanism as an equity-like investment. "I think that's the future of tokens," he remarked, forecasting a one-to-three-year transformation for the industry, with crypto wallets and exchanges evolving into neobanks offering stablecoins, tokenized equities, and money market products.