Mike Novogratz points out the challenges of XRP and Cardano in the evolving crypto market

The dynamism of the cryptocurrency market is forcing a fundamental reevaluation of how projects are measured. According to Mike Novogratz, founder and CEO of Galaxy Digital, platforms like XRP and Cardano need to go far beyond loyal follower bases to achieve lasting relevance in a market that is increasingly abandoning speculative narratives in favor of concrete utility metrics.

From hype to fundamentals: transforming market dynamics

Novogratz’s perspective reflects a significant evolution in how investors and analysts evaluate digital assets. During a conversation with Alex Thorn, Head of Research at Galaxy Digital, the executive highlighted that the industry is moving away from periods driven by speculative enthusiasm, shifting now to a model where value is determined by revenue generation, genuine usage volume, and tangible measurable metrics.

“The key question is: Can Ripple stay stable? Can Cardano stay stable?” Novogratz asked. This question encapsulates a dilemma faced by many projects that have built passionate communities but are still seeking to establish practical use cases.

XRP and Cardano face realities of limited on-chain activity

Although both projects have notably resilient communities, the actual activity within their respective networks remains significantly low. Novogratz paid particular attention to the situation of Cardano: “Charles Hoskinson keeps the Cardano community cohesive through a blockchain that people don’t use intensively. He built a strong supporter base, just like with XRP. But can they maintain this cohesion when increasingly robust alternatives emerge?”

The numbers support this assessment. According to updated data from crypto tracking platforms, XRP has a market capitalization of approximately $83.15 billion, remaining one of the largest cryptocurrencies by total value. Cardano (ADA) has a market cap of around $9.38 billion, with the current price near $0.25.

However, when examining actual user activity, the picture becomes less impressive. Active address metrics reveal a challenging scenario: while XRP maintains a presence in the market, actual transaction participation remains modest compared to other established platforms. Projects like Solana, which mobilize millions of active addresses through DeFi applications, meme tokens, and other services, demonstrate dramatically higher usage volume.

Mike Novogratz contrasts traditional models with emerging token economies

The core point raised by Novogratz is that non-fungible tokens — those whose primary proposition is not to serve as money — will be evaluated using criteria similar to those applied to traditional companies. Revenue generated, effective user adoption, and measurable value become critical parameters.

To illustrate how this dynamic can work in practice, Novogratz pointed to emerging examples. Hyperliquid, a decentralized perpetual exchange, exemplifies this innovative model: the platform generates substantial revenue through its operations and burns most of its profits to buy back its token, creating an economic structure comparable to traditional dividend-paying stocks.

This approach sharply contrasts with projects that primarily sustain themselves through community loyalty without underlying tangible value flows. The question posed by Novogratz resonates: when multiple options compete for user attention, what will be the real basis for differentiation?

Regional transformations and the role of stablecoins

While established projects navigate these global challenges, regional markets display distinct dynamics. Latin America’s cryptocurrency market shows rapid growth, with transaction volume increasing by 60% and reaching $730 billion in 2025. This expansion is mainly driven by users adopting cryptocurrencies for payments and international transfers.

Brazil and Argentina lead this regional trend: Brazil dominates in gross transaction volume, while Argentina shows particularly accelerated growth, driven especially by cross-border transfers and stablecoin adoption. These stablecoins play a key role in enabling practical use cases — allowing users to send funds abroad, receive money from platforms like PayPal, and bypass traditional banking intermediaries.

This regional adoption reinforces Mike Novogratz’s core argument: markets distinguish between speculative promises and tangible utility. XRP, often positioned as a solution for cross-border payments via RippleNet and partnerships with financial institutions, could potentially benefit from this regional demand. However, the central question remains: can the fundamental value proposition keep pace with the growth of the communities supporting these projects?