Galaxy Digital CEO Slams XRP and Cardano: ’Community Hype’ Can’t Replace Real Value

Galaxy Digital's CEO just dropped a truth bomb on two crypto giants—and their armies of loyal followers aren't going to like it.

The Hype Machine vs. Hard Fundamentals

In a landscape crowded with promises, the CEO argues that XRP and Cardano have built their empires on shaky ground. It's not about the tech specs or the partnerships—it's about a community that cheers louder than it builds. The digital echo chamber, he suggests, has become their primary asset.

When Chatter Drives the Charts

Forget utility adoption or revenue streams. The critique centers on a market that moves on social media sentiment and influencer endorsements. It's a dangerous game where price action hinges on the next viral thread, not the next protocol upgrade—a classic case of the tail wagging the dog, or in this case, the memes moving the market.

A Warning Shot for Speculators

This isn't just academic sniping. It's a direct challenge to the investment thesis behind these assets. The message is clear: sustainable value isn't manufactured in Telegram groups or on Reddit forums. Long-term survival requires something more tangible than collective enthusiasm and hopium.

It's the ultimate finance jab: building a portfolio on community sentiment is like building a house on tweets—great until the platform changes the algorithm.

Galaxy CEO Raises Long-term Value of XRP and Cardano.

Galaxy Digital CEO, Mike Novogratz, stated that cryptocurrencies such as XRP and cardano (ADA) must demonstrate actual utility to endure market cycles in the future. He believes both tokens rely heavily on strong community loyalty rather than measurable business value.

Novogratz made these remarks during a discussion with Alex Thorn, Head of Firmwide Research at Galaxy Digital. The discussion centered around the 2026 Bitcoin and crypto market, real-world assets, tokenization, and artificial intelligence.

Novogratz believes that the crypto industry is in a new stage where only narratives will not justify high valuations.

Source: Wu Blockchain X

Move Narrative Tokens to Business Driven Assets.

Novogratz described that previous cycles enabled token driven by HYPE to flourish. However, the market is now changing as more projects compete for attention and capital.

He stated that crypto is moving from “narrative-driven tokens” to “business-driven tokens” backed by profits, real users, and measurable outcomes. Tokens that fail to show how they generate value may struggle to stay relevant.

As competition intensifies, it has been harder to maintain communities. Only loyal followers can slow down projects that rely on them compared to rivals that have actual economic activity.

Bitcoin’s Unique Position as Money

Novogratz emphasized that bitcoin has already established itself as money, which gives it a clear valuation framework. In contrast, other tokens are treated like businesses.

“Once you’re not money, you’re just a business,” he said, adding that business valuations are usually much lower than monetary assets.

He questioned whether Ripple and Cardano can maintain momentum in an environment where investors increasingly ask, “How much value do you actually create?”

Criticism of Cardano and XRP Communities

Novogratz directly mentioned Cardano founder Charles Hoskinson, saying the Cardano blockchain is not widely used despite having a loyal community.

He contrasted the position of ADA to that of XRP, indicating that both projects have one thing in common: they both have to stay relevant as more viable and lucrative options become available.

However, even though ADA had millions of wallets, Novogratz suggested that usage and revenue were more important than the size of the community.

Hyperliquid as a Future Token.

In contrast, Novogratz pointed out Hyperliquid as the future cryptocurrency. The exchange is said to burn 98% of its profits through the repurchase and destruction of the token.

This, he said, is the structure that causes the token to act more like equity, where holders are rewarded based on actual business performance.

Crypto’s Next 1–3 Year Transformation

Novogratz predicted that the crypto market industry will undergo major changes over the next one to three years. He predicts the development of wallets and exchanges into neobanks. Such platforms can provide stablecoins, tokenized equities, and money market products, which further strain underutilized blockchains.

Conclusion 

Mike Novogratz is sure that XRP and ADA should go beyond community buzz and demonstrate practical use since cryptocurrency markets are starting to privilege business-oriented token with returns and quantifiable worth.