XRP Relevance: Novogratz Signals Real-World Utility

What to Know:

• Galaxy Digital CEO Mike Novogratz suggests XRP and Cardano risk irrelevance without demonstrating real-world utility.
• His comments reflect a broader shift towards valuing crypto projects based on tangible economic output rather than community support.
• The remarks underscore the need for XRP and Ripple to showcase clear use cases to attract institutional interest and inflows.

Galaxy Digital CEO Mike Novogratz recently sparked debate by suggesting that XRP and Cardano could face irrelevance if they fail to deliver tangible real-world utility. His statements, made during a discussion with Galaxy’s Head of Firmwide Research, Alex Thorn, highlight a shifting landscape in crypto valuations. This transition favors projects generating economic value over those driven primarily by community loyalty and speculative narratives.

Shifting Market Dynamics

Novogratz argues that the crypto market is evolving beyond narrative-driven assets. Historically, projects like XRP and Cardano have benefited from strong communities and branding. The next cycle, however, may favor “business-driven tokens” that generate revenue, support real-world applications, and offer sustainable returns. Investors are increasingly scrutinizing blockchains as businesses, demanding to know how much value a network truly generates.

Utility or Irrelevance

This market shift will likely unfold over one to three years. During this period, projects lacking demonstrable utility or steady cash flow may struggle to maintain investor interest. Novogratz specifically questioned whether XRP and Cardano can adapt as new alternatives emerge. He framed this as a critical test: can these ecosystems evolve beyond narratives fueled by community hype?

XRP’s Use Cases

While Novogratz’s comments sparked criticism, proponents of XRP emphasize its expanding real-world utility. They point to its applications in cross-border payments and growing adoption as a treasury asset. Its increasing role in decentralized finance, with platforms like Axelar and Flare Networks, also demonstrates adoption. These tangible use cases may prove critical in maintaining XRP’s relevance and attracting institutional capital.

Community Response

Novogratz’s views drew fire from the XRP community, with some questioning his credibility given his past support for Terra (LUNA). Detractors emphasize XRP’s proven track record over the past 13 years and its expanding utility in cross-border payments and decentralized finance. This pushback highlights the strong community support for XRP, though the long-term market impact remains to be seen.

I guess only time will tell. XRP has great utility, unlike BTC and its still around tooday.

— Gio🍀☝️ (@GIO8DIO) December 27, 2025

Looking Ahead

Novogratz’s perspective serves as a reminder that sustained success in the crypto market requires more than just community support. As institutional interest grows, projects must demonstrate clear value propositions and real-world applications to attract investment. For XRP and Ripple, this means continuing to showcase the utility of their technology and expanding their reach in the global financial landscape. The ability to adapt and deliver tangible results will ultimately determine their long-term relevance in an evolving market.

Related: Stablecoins Show $69B on Exchanges

Source: Original article