Key Takeaways
- Galaxy Digital CEO Mike Novogratz emphasizes the need for XRP and Cardano to demonstrate real utility to sustain their valuations.
- He believes crypto is moving from narrative-driven tokens to business-driven tokens.
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Galaxy Digital CEO Mike Novogratz said that tokens like XRP and Cardano (ADA), which rely heavily on community loyalty, must prove real-world utility or risk lagging stronger-performing rivals in future market cycles.
He made the comments in a recent discussion with Alex Thorn, Head of Firmwide Research at Galaxy Digital, about 2026 outlooks for Bitcoin, crypto, tokenization, real-world assets, and artificial intelligence.
Novogratz believes that the crypto market is moving away from tokens built on hype to those with real business fundamentals. With more choices available each cycle, keeping a community engaged is harder. Tokens that survive only because of loyal communities may lose out to those with profits and measurable value.
He said that the likely winners are business-driven tokens, blockchains that truly become platforms people build on, and Bitcoin.
“Because the moment you’re not money, Bitcoin is money, then you’re just a business. The valuations are a lot lower,” he noted.
“Can Ripple hold it together? Can Cardano hold it together?” Novogratz asked during the conversation. “Who became money and who were businesses that are going to now be valued at, well, how much do you make me?”
“Charles Hoskinson, bless his soul, he’s kept the Cardano community with a blockchain that people don’t really use a lot,” Novogratz said. “He’s had a strong community just like XRP. Can you keep it together when there are more and more options?”
Novogratz pointed to Hyperliquid as an example of a token with clear value. The exchange burns 98% of its profits by buying back and destroying tokens, creating what he described as an equity-like investment.
“I think that’s the future of tokens,” he said. “You’re going to see good tokens trade well, just like good real-world assets.”
The Galaxy CEO predicted a one-to-three-year transformation period for the crypto industry, with crypto wallets and exchanges evolving into neobanks offering stablecoins, tokenized equities, and money market products.