XRP and Cardano risk losing their relevance if they fail to demonstrate real-world utility. That’s according to a warning issued by Mike Novogratz, CEO of Galaxy Digital, according to a report released today by market analyst Wu Blockchain. Novogratz believes that cryptocurrencies (like XRP, Cardano and others), which survive primarily through loyal communities, could lose importance to those that demonstrate real-world use.
In a podcast interview broadcast on Thursday, December 25, 225, Novogratz talked about the 2026 predictions for Bitcoin, cryptocurrency, and AI. Based on his discussions with Alex Thorn, Head of Firmwide Research, Novogratz provided his expert perspective on macro, crypto markets, tokenization, RWAs, fiscal policy, and the impact of AI on labor markets.
Galaxy Digital CEO Mike Novogratz warned that XRP and Cardano (ADA) risk losing relevance if they fail to demonstrate real-world utility, saying the crypto market is moving from “narrative-driven tokens” to “enterprise-driven tokens” with measurable value and profits. He expects…
— Wu Blockchain (@WuBlockchain) December 27, 2025
Crypto’s Shift from Speculative Assets to Business-Focused Tokens
According to Novogratz, the cryptocurrency market is moving away from assets built on hype and strong community engagement and toward those that provide real utility (tangible benefits) to users. The Galaxy Digital CEO mentioned XRP and Cardano as examples of crypto assets that have survived multiple market cycles thanks to community belief rather than actual yield. He pointed out that nowadays it is more difficult to keep a crypto community engaged than before, as the increased availability of a wide variety of tokens attracts users’ attention. As a result, assets that previously survived primarily through loyal communities could lose out to those that provide real customer benefits (tangible value).
According to Novogratz, the likely winners are tokens that go beyond speculative activities, allowing businesses to unlock new revenue streams, expand customer engagement, and develop decentralized ecosystems. Cryptographic tokens (like Bitcoin, Ethereum, etc.) remain attractive investment options due to their practical uses within protocol ecosystems. This is because, 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, such as staking, investing, trading, portfolio diversification, and several others.
“Can Cardano or Ripple hold up? » Novogratz asked during the discussion. He gave the example of Charles Hoskinson, who has maintained the Cardano community with a blockchain network that users don’t really use much. He asked: With a strong community like XRP, can you stay together as there are more and more multiple options?
What real-world utility means for cryptos
Novogratz’s comments are crucial, as they highlight emerging changes in the functionality and adoption of blockchain platforms. Unlike speculative assets, tokens driving real-world utilities unlock decentralized applications. They provide measurable value to users based on their practical use and demand for the decentralized platforms they support, making them unique assets in the cryptocurrency landscape. They give their holders access to a wide range of services and products within blockchain ecosystems.
