Novogratz Warns: XRP and Cardano Must Evolve Beyond Fan-Driven Hype to Survive

Mike Novogratz just dropped a truth bomb on two crypto giants—and their armies of loyalists aren't going to like it.

The Galaxy Digital CEO argues that XRP and Cardano have hit a critical inflection point. Their communities are legendary for passion and memes, but that same fervor might now be their biggest obstacle. For these assets to graduate from speculative tokens to foundational protocols, they need something more substantial than social media rallies.

The Community Conundrum

It's the classic crypto dilemma. A dedicated base provides liquidity, narrative, and relentless marketing. But it can also create an echo chamber—where price discussions drown out technical progress and any critique is met with hostility. Novogratz suggests this dynamic keeps both projects trapped in a cycle of retail speculation instead of institutional adoption.

Building Beyond the Bubble

The path forward isn't about abandoning the community. It's about giving them more to champion than just the next price pump. That means delivering tangible, scalable utility that appeals to builders and enterprises, not just traders. Think real-world payment rails, robust decentralized applications, and developer ecosystems that rival Ethereum's—not just another influencer tweet storm.

A Reality Check for Crypto

Let's be honest—this is a wake-up call for the entire sector. A project's market cap shouldn't be solely pegged to its subreddit's morale. True value gets built in the quiet grind of code commits and partnership deals, not the noisy peaks of hype cycles. After all, in traditional finance, you don't value a bank by its most enthusiastic Twitter followers... though some hedge funds might try.

The message is clear: fan loyalty can launch a rocket, but only real utility keeps it in orbit. For XRP and Cardano, the race is no longer about winning the daily sentiment poll. It's about proving they can build something that lasts long after the hype fades.

TLDR

• XRP has over 16,700 active addresses, far below tokens like Solana.
• Cardano’s ADA has just over 19,000 active addresses currently.
• Solana sees millions in active addresses driven by apps and DeFi.
• XRP ranks 5th by market cap, but on-chain activity remains limited.

Ripple’s XRP and Cardano’s ADA face growing pressure to prove their real-world utility as the crypto market matures. Galaxy Digital CEO Mike Novogratz questioned whether their large communities alone are enough to sustain long-term value without strong usage data and adoption.

XRP and Cardano Need More Than Community Support

Galaxy Digital CEO Mike Novogratz has raised concerns about the long-term value of XRP and Cardano’s ADA tokens. Speaking with Alex Thorn, Head of Research at Galaxy Digital, he said both projects must show more real-world use cases to justify their valuations.

“Can Ripple hold it together? Can Cardano hold it together?” Novogratz asked during the interview. He noted that both tokens have strong, loyal communities but relatively low network activity. That, he said, might not be enough as the crypto market shifts toward utility-driven assets.

XRP & ADA NEED REAL-WORLD UTILITY

Mike Novogratz warns that XRP and ADA could fade if they fail to deliver real-world utility, as crypto shifts away from narrative-driven tokens toward assets with real value and business adoption. pic.twitter.com/Sy5x1pN81Q

— Coin Bureau (@coinbureau) December 27, 2025

Ripple uses XRP as a bridge token for cross-border payments and has partnered with financial institutions. However, critics say the token’s organic usage is still low. Despite this, XRP remains one of the top cryptocurrencies by market cap, currently valued at about $115 billion.

Low On-Chain Activity Raises Usage Questions

While XRP and ADA maintain high market rankings, on-chain data shows weaker user engagement compared to other networks. According to CryptoQuant, XRP had 16,703 active addresses at the time of reporting. cardano had just over 19,000 active addresses.

By contrast, solana sees millions of active users due to its growing use in decentralized finance (DeFi), apps, and meme tokens. Its SOL token holds the 7th position in global crypto rankings with a market cap of around $72 billion.

Novogratz pointed to this gap in real usage: “Charles Hoskinson, bless his soul, he’s kept the Cardano community with a blockchain that people don’t really use a lot.”

Market Shifting Toward Utility-Based Valuation

Novogratz said the crypto market is evolving. Assets that are not considered money, such as Bitcoin, will increasingly be valued like traditional businesses. That means tokens will be judged based on measurable data like revenue, user engagement, and product value.

He gave the example of Hyperliquid, a decentralized perpetuals exchange. It creates revenue and uses most profits to buy back its token, offering a model similar to equity-based value. This model, Novogratz said, represents where much of the industry is heading.

In that context, community support alone may no longer be enough to justify the valuation of tokens like XRP and ADA. They will need to demonstrate how they are being used in real-world applications.

Cardano and XRP Face Growing Competition

The pressure on both projects increases as newer blockchains attract developers and users. Platforms like Solana, Ethereum, and others continue to expand their ecosystems with active DeFi, gaming, and utility apps.

XRP and ADA have not shown comparable levels of adoption. Despite years of development and major followings, their networks process relatively low numbers of daily transactions and host fewer apps.

“Can you keep it together when there are more and more options?” Novogratz asked. His comments reflect a wider sentiment among investors who now seek performance metrics over popularity in crypto assets