TLDR
- Mike Novogratz says XRP and Cardano must prove real utility beyond their fanbase.
- Novogratz points out low adoption rates for XRP and Cardano despite strong communities.
- XRP and Cardano’s market values remain high but lack significant on-chain activity.
- Tokens like XRP and Cardano must demonstrate real-world usage to stay relevant.
As the cryptocurrency market matures, projects like Ripple’s XRP and Cardano’s ADA need to prove they have genuine utility beyond their fanbases. This was the view expressed by Galaxy Digital CEO Mike Novogratz, who spoke recently about the future of these cryptocurrencies. Novogratz questioned whether XRP and ADA can sustain their positions as the market shifts focus from hype-driven narratives to more fundamentals-based evaluations.
Challenges for XRP and Cardano in a Changing Market
Novogratz emphasized that while both XRP and ADA have loyal and resilient communities, their on-chain activity remains weak. XRP, which powers Ripple’s payment network, is often praised for its low-cost, fast cross-border payment capabilities.
However, its actual adoption remains limited. Despite having a market capitalization of around $115 billion, XRP’s active addresses are relatively low, with only about 16,700 active addresses at the time of reporting.
🚨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
Similarly, Cardano’s ADA, which sits at a market cap of approximately $13-14 billion, faces challenges with adoption. Cardano’s blockchain, despite its strong community led by founder Charles Hoskinson, has not seen widespread use in decentralized applications (dApps) or decentralized finance (DeFi).
With only about 19,000 active addresses, Cardano lags behind other platforms like Solana, which boasts millions of active addresses thanks to its DeFi and app ecosystem.
Adoption and Usage Must Drive Value
As the cryptocurrency space evolves, Novogratz pointed out that tokens which are not viewed as “money,” like Bitcoin, will be valued based on their usage and measurable impact, similar to traditional businesses. This shift means that for XRP and ADA to continue thriving, they must prove they offer more than just a dedicated fan base.
XRP, while partnering with banks and fintech firms for cross-border payments, has struggled to gain organic, widespread adoption. Similarly, Cardano’s smart contract platform has yet to deliver significant real-world applications.
Novogratz’s comments reflect a growing trend in the cryptocurrency industry. As the market matures, there is increasing demand for projects to demonstrate their utility beyond speculative interest. This puts pressure on tokens like XRP and ADA to showcase how they can drive tangible value through adoption, usage, and real-world applications. The broader market is moving towards a model where revenue generation and usage metrics become key indicators of success.
Comparing XRP and Cardano to Emerging Market Leaders
Novogratz also highlighted emerging projects like Hyperliquid, a decentralized exchange, which generates revenue and reinvests in its ecosystem. Such models, he argued, are becoming more attractive as the market shifts toward value-driven projects. Hyperliquid’s ability to burn profits and create equity-like incentives for token holders is one example of the kind of innovation that XRP and Cardano will need to match in order to stay competitive.
While XRP and Cardano’s loyal communities continue to support their projects, these cryptocurrencies must address their lack of real-world usage and adoption if they hope to remain relevant in an increasingly competitive landscape. With market valuation still high for both tokens, the pressure to prove their long-term utility and value is mounting.
The evolving nature of the cryptocurrency market means that XRP and Cardano, like many others, will need to adapt quickly to the changing priorities of investors and users. Without significant progress in usage and utility, their dominance may be at risk as new projects emerge with more tangible value propositions.
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