Are XRP and Cardano Losing Relevance? Mike Novogratz Explains Key Indicators as Crypto Investors Move Beyond Hype, Seek Real Utility

XRP and Cardano risk losing relevance if they fail to demonstrate real-world usefulness. That is according to a warning issued by Galaxy Digital CEO Mike Novogratz, as per a report disclosed today by market analyst Wu Blockchain. Novogratz believes that cryptocurrencies (like XRP, Cardano, and others), which survive mainly on loyal communities, could lose their importance to those that demonstrate real-world usage. 

In a podcast interview aired on Thursday, December 25, 225, Novogratz talked about the 2026 predictions for Bitcoin, cryptocurrency, and AI. Based on his discussions with Alex Thorn, the head of Firmwide Research, Novogratz provided his expert point of view on macro, crypto markets, tokenization, RWAs, fiscal policy, and the effect of AI on labor markets.

Crypto Shift From Speculative Assets to Business-Driven Tokens

According to Novogratz, the cryptocurrency market is moving away from assets built on hypes and strong community engagement to those that offer real-world utility (tangible benefits) to users. The Galaxy Digital CEO mentioned XRP and Cardano as examples of crypto assets that have survived multiple market cycles through community belief rather than real yield. He pointed out that, currently, keeping a crypto community engaged is more difficult than before, as increased availability of a wide variety of tokens attracts users’ attention. As a result, assets that used to survive mainly due to loyal communities could lose the game to those that provide customers with real-world benefits (tangible value).

As per Novogratz, likely winners are tokens that are beyond speculative activities, enabling businesses to unlock new revenue streams, broaden customer engagement, and develop decentralized ecosystems. Crypto tokens (like Bitcoin, Ethereum, etc.) remain compelling investment options because of their practical utilities within protocol ecosystems. This is due to the fact that, unlike speculative assets, real-world utility tokens provide practical benefits by rewarding the community for participation, enabling transactions, and giving token holders access to various services within decentralized ecosystems, like staking, investing, trading, portfolio diversification, and several others.   

“Can Cardano or Ripple hold it together?” Novogratz asked during the discussion. He gave an example of Charles Hoskinson, who has kept the Cardano community with a blockchain network that users don’t really utilize a lot. He asked, with a strong community like XRP, can you keep it together when there are more and multiple options?    

What Real-World Utility Means For Cryptos

Novogratz’s comments are crucial, as they showcase emerging shifts in the functionality and adoption of blockchain platforms. Unlike speculative assets, tokens driving real-world utilities unlock decentralized applications. They give people measurable value from their practical usage and the demand for the decentralized platforms they support, making them unique assets in the cryptocurrency landscape. They give holders access to a wide range of services and products within blockchain ecosystems.