Mike Novogratz Declares: XRP’s True Power Lies in Its Community, Not Wall Street

Forget the suits and the trading floors. According to Galaxy Digital CEO Mike Novogratz, XRP's real engine isn't fueled by institutional money—it's powered by people.

Community Over Capital

The narrative that a cryptocurrency's success hinges on Wall Street adoption gets flipped on its head. Novogratz points to the decentralized, global network of developers, validators, and everyday holders as XRP's foundational strength. This grassroots ecosystem, he argues, provides resilience that no investment bank can match.

A Different Kind of Network Effect

While traditional finance obsesses over quarterly earnings and analyst upgrades, the XRP community focuses on utility, cross-border payment solutions, and building out the ledger's infrastructure. It's a long-game strategy that bypasses the short-term volatility often dictated by hedge fund whims—a refreshing change from the usual pump-and-dump circus.

Provocative, but grounded. Novogratz's take serves as a stark reminder that in the crypto world, community conviction can sometimes cut deeper than institutional capital. After all, Wall Street's love is fickle; today's darling is tomorrow's tax write-off.

Mike Novogratz isn’t convinced that institutional money is what keeps XRP relevant. Instead, the Galaxy Digital CEO believes XRP’s staying power comes from something far less measurable but equally powerful, its community. 

Speaking on a recent podcast, Novogratz credited the “XRP Army” for carrying the token through multiple market cycles, even as Wall Street attention remains firmly locked on Bitcoin and its ETFs.

In a market flooded with new tokens, narratives, and short-lived trends, Novogratz sees community belief as a survival mechanism. XRP, in his view, is proof that loyalty can still matter in crypto.

Bitcoin ETFs Now Control the Market’s Pulse

While XRP leans heavily on grassroots support, bitcoin is being shaped by institutional demand. Novogratz explained that spot Bitcoin ETFs have become a dominant force in market structure, steadily absorbing supply even during volatile periods. Despite Bitcoin’s failure to decisively reclaim the $100,000 level, ETF inflows have continued, preventing deeper downside moves.

He described the $100,000 zone as a psychological and technical wall built from earlier aggressive buying. That demand has since turned into overhead supply, slowing momentum as large holders sell into strength. Still, Novogratz views this phase as consolidation, not exhaustion.

Community as a Competitive Edge for XRP

Novogratz compared XRP to other long-standing crypto assets that survived not through innovation or yield, but through belief. As capital becomes more selective and new projects fight for relevance, maintaining a committed user base has become harder than ever.

XRP’s supporters, however, have remained vocal and engaged. That persistence keeps the asset visible, even without consistent institutional inflows. In today’s market, Novogratz argues, tokens without strong communities risk fading quietly into irrelevance.

ETFs, Supply Shocks, and XRP’s Surprise Factor

The broader ETF narrative isn’t limited to Bitcoin. Legal expert Bill Morgan recently noted that the anticipated “XRP ETF supply shock” has, at least partially, delivered. According to him, developments around XRP-linked investment products have genuinely surprised the market, shifting expectations around supply dynamics and long-term positioning.

Utility Still Supports the Long-Term Case

Adding to the discussion,Xaif Crypto revisited a point Ripple CTO David Schwartz made back in 2017. As he noted, XRP cannot stay cheap forever without breaking its own economics. Transaction fees on the XRP Ledger are denominated in XRP, not dollars. As XRP’s price rises, fees actually become cheaper in real-world terms, while liquidity and network security improve.

In other words, higher prices don’t undermine XRPL’s utility, they strengthen it.

Macro Risks Can’t Be Ignored

Despite pockets of optimism, Novogratz remains cautious. He warned that a sharp downturn in U.S. equities, particularly the Nasdaq, WOULD likely drag crypto lower. He also flagged AI-driven job displacement as a growing economic wildcard that could pressure all risk assets.

For now, XRP’s relevance appears less about Wall Street and more about belief, and that belief, at least so far, hasn’t broken.