Mike Novogratz Urges XRP and Cardano to Demonstrate Real Utility Beyond Fan Support
Galaxy Digital CEO Mike Novogratz has emphasized the need for cryptocurrencies XRP and Cardano (ADA) to prove their real utility beyond sustaining large fan communities as the market matures and focuses more on fundamentals. Speaking in an interview with Galaxy's Alex Thorn on December 29, 2025, Novogratz noted that current on-chain activity levels for both tokens are relatively weak, citing approximately 16,703 active addresses for XRP and 19,000 for Cardano at the time of the report.
In comparison, Solana (SOL) displays stronger network engagement, holding a market capitalization of about $72 billion and ranking seventh among cryptocurrencies. XRP's market cap is around $115 billion, placing it roughly fifth, while Cardano stands near $13 to $14 billion, ranking twelfth.
Novogratz highlighted a shift in market perception, where tokens that do not represent 'money' will increasingly be valued similarly to traditional businesses, based on their revenue, usage, and measurable value. This perspective poses challenges for Ripple's XRP, which serves as a bridge asset in RippleNet's cross-border payment system but faces skepticism due to low organic activity that does not fully justify its high valuation. Meanwhile, Cardano benefits from its founder Charles Hoskinson maintaining a substantial community despite limited on-chain usage.
As a point of contrast, Novogratz mentioned Hyperliquid, a token that generates revenue and operates with buyback-like equity economics, illustrating a model aligned with emerging valuation criteria.
