XRP and Cardano Face Relevance Crisis as Crypto Market Evolves, Warns Galaxy Digital CEO

Novogratz Sounds Alarm on Community-Driven Tokens Without Real-World Applications

In a stark warning that has sent ripples through the cryptocurrency community, Galaxy Digital CEO Mike Novogratz has cautioned that established cryptocurrencies like XRP and Cardano (ADA) risk fading into obscurity if they fail to demonstrate tangible real-world utility. The remarks, reported by prominent market analyst Wu Blockchain, highlight a fundamental shift in the cryptocurrency landscape from narrative-driven tokens toward business-oriented digital assets that deliver measurable value.

Novogratz’s assessment comes at a critical juncture for the cryptocurrency market, which continues to mature and evolve beyond its speculative origins. Speaking during a podcast interview on December 25, 2025, the Wall Street veteran shared his outlook for Bitcoin, cryptocurrency, and artificial intelligence through 2026, drawing on insights developed in collaboration with Alex Thorn, Galaxy Digital’s head of Firmwide Research. Their discussion spanned macroeconomic trends, crypto market dynamics, tokenization, real-world assets (RWAs), fiscal policy implications, and the transformative impact of AI on global labor markets.

The Evolving Cryptocurrency Ecosystem: From Narratives to Business Value

“The cryptocurrency market is undergoing a fundamental transformation,” Novogratz explained during the interview. “We’re witnessing a shift away from assets that have thrived primarily on hype and community engagement toward those that deliver concrete utility to their users.”

This evolution represents a maturation of the crypto space, with investors and users increasingly demanding demonstrable value rather than merely speculative potential. According to Novogratz, XRP and Cardano exemplify cryptocurrencies that have weathered multiple market cycles largely through dedicated community support rather than generating real yield or tangible benefits.

“Can Cardano or Ripple hold it together?” Novogratz questioned during the discussion, specifically referencing Cardano founder Charles Hoskinson’s success in maintaining community enthusiasm despite relatively limited blockchain utilization. “With strong communities like XRP’s, can you maintain cohesion when users face an expanding array of alternatives offering genuine utility?”

The Galaxy Digital CEO emphasized that sustaining community engagement has become increasingly challenging in today’s diversified token landscape. As users encounter a growing variety of cryptocurrency options, their attention and investment capital naturally gravitate toward projects delivering concrete advantages. This environment places additional pressure on established cryptocurrencies that have historically relied more on community loyalty than practical applications.

Defining Real-World Utility in the Cryptocurrency Context

Novogratz’s observations highlight an important distinction within the cryptocurrency ecosystem between speculative assets and those that serve functional purposes within decentralized networks. Real-world utility tokens provide practical benefits by rewarding community participation, facilitating transactions, and granting holders access to various services within decentralized ecosystems, including staking, investing, trading, and portfolio diversification.

The likely winners in this evolving landscape, according to Novogratz, are tokens that transcend purely speculative activities. These digital assets enable businesses to unlock new revenue streams, broaden customer engagement, and foster decentralized ecosystems. Despite market volatility, cryptocurrencies like Bitcoin and Ethereum remain compelling investment options because of their established utilities within protocol ecosystems.

Unlike purely speculative assets, utility-focused tokens derive their value from practical applications and the demand for the decentralized platforms they support. This functionality makes them distinctive assets in the cryptocurrency landscape, providing holders with access to a wide range of services and products within blockchain ecosystems.

The Business-Driven Token Revolution

“The market is shifting from narrative-driven tokens to business-driven tokens with measurable value and profits,” Novogratz stated, highlighting a maturation process that mirrors developments in traditional technology sectors. This evolution suggests that cryptocurrencies are entering a new phase where economic fundamentals and practical applications increasingly determine market valuation.

Industry analysts note that this transition reflects broader adoption trends, as blockchain technology moves beyond early enthusiasts to mainstream users who demand practical benefits. Business-driven tokens create value by solving real problems, streamlining processes, and reducing costs—much like successful technology companies in traditional markets.

For established cryptocurrencies like XRP and Cardano, this shifting landscape presents both challenges and opportunities. While their established community bases provide valuable support, Novogratz suggests that maintaining relevance will require demonstrating how these platforms solve real-world problems more effectively than emerging alternatives.

Implications for Investors and the Future of Blockchain Technology

The implications of Novogratz’s observations extend beyond XRP and Cardano, potentially reshaping how investors evaluate cryptocurrency projects. Rather than focusing exclusively on community size or market capitalization, savvy investors may increasingly prioritize metrics related to network activity, transaction volume, developer engagement, and real-world adoption.

This evolution also signals a maturing cryptocurrency market that increasingly values sustainable business models over speculative narratives. Projects that generate genuine value for users—whether through improved financial accessibility, enhanced privacy, streamlined cross-border payments, or innovative decentralized applications—are positioned to thrive in this new environment.

“What we’re seeing is the natural progression of a technology through its adoption cycle,” explained a blockchain technology researcher who requested anonymity. “Early adopters may be drawn to promising narratives, but mainstream adoption requires demonstrable benefits that outperform existing solutions.”

The Road Ahead for Community-Backed Cryptocurrencies

For cryptocurrencies like XRP and Cardano that have built substantial communities, the path forward likely involves translating enthusiastic support into practical applications. Both projects have announced initiatives aimed at expanding their utility—Ripple through cross-border payment solutions and Cardano through its smart contract platform—but Novogratz’s comments suggest these efforts must accelerate to maintain relevance.

The cryptocurrency landscape continues to evolve rapidly, with new projects emerging regularly that promise innovative solutions to persistent challenges. In this competitive environment, established cryptocurrencies cannot rely solely on past achievements or community loyalty—they must continuously demonstrate their value proposition through real-world applications.

As the market shifts toward business-driven tokens with measurable utility, investors and users alike will benefit from increased transparency regarding the actual value delivered by blockchain projects. This evolution, while potentially challenging for some established cryptocurrencies, ultimately strengthens the foundation of the digital asset ecosystem by emphasizing sustainable innovation over speculative fervor.

Whether XRP, Cardano, and similar community-driven cryptocurrencies can successfully navigate this transition remains to be seen. However, Novogratz’s warning serves as a timely reminder that in the rapidly evolving world of digital assets, utility and adaptation are not merely advantageous—they may be essential for survival.