Mike Novogratz Issues Stark Warning to XRP and Cardano

Galaxy Digital CEO Mike Novogratz has sounded the alarm for prominent altcoins Ripple (XRP) and Cardano (ADA), emphasizing that their survival hinges on demonstrating tangible, real-world utility beyond mere community hype. Speaking in a recent discussion on 2026 crypto outlooks, Novogratz highlighted a pivotal shift from "narrative-driven tokens" to "business tokens" backed by measurable value, profits, and practical applications.

Novogratz, a veteran investor and former critic of XRP, pointed out that while strong communities have sustained these projects through volatile cycles, reliance on loyalty alone may not suffice as competition intensifies.

"Charles Hoskinson, bless his soul, he’s kept the Cardano community with a blockchain that people don’t really use a lot. He’s had a strong community just like XRP. Can you keep it together when there are more and more options?" he questioned during the talk.

He contrasted this with tokens like Hyperliquid, which burns 98% of profits through buybacks, creating equity-like value for holders.

This warning comes amid broader industry transformation, with Novogratz predicting a 1-3 year timeline for wallets and exchanges to evolve into neobank-like platforms offering stablecoins, tokenized equities, and money market products. Bitcoin, he argued, stands apart as "money" with a unique valuation framework, while Ethereum and others must prove business fundamentals to thrive.

The comments have sparked heated debate across the crypto community. Earlier in 2025, Novogratz himself admitted he was "wrong about Cardano" and praised XRP's narrative-driven ecosystem, noting,

"If people want to be part of the XRP Army, let them. XRP has a narrative. All of these have a store of value."

This reversal underscores the resilience of XRP and ADA holders, often dubbed the "XRP Army" and Cardano enthusiasts, who have defended their projects against ongoing FUD (fear, uncertainty, and doubt).

Recent on-chain data and developments offer a mixed picture. Critics like Wall Street veteran Fred Krueger have claimed XRP sees "zero real usage" beyond remittance hype, pointing to breakdowns in price channels and consolidation patterns targeting potential upsides of $3.47 to $3.63 if utility narratives hold. However, proponents highlight XRP's role in Ripple's cross-border payment solutions, with real-world adoption in remittances via the XRP Ledger (XRPL). Cardano, meanwhile, continues to build on its research-driven approach, focusing on scalability and DeFi applications, though adoption metrics lag behind rivals like Solana.

Market reactions have been swift. As of today, XRP trades at around $0.60, down modestly amid broader altcoin corrections, while ADA hovers near $0.35. Analysts suggest this "wake-up call" could pressure both projects to accelerate partnerships and integrations - Ripple's ongoing legal battles with the SEC notwithstanding, and Cardano's push toward smart contract enhancements.

Looking ahead, Novogratz's outlook aligns with a consensus that the next bull cycle will favor utility over speculation. For XRP and ADA, the clock is ticking: prove profitability and real-world impact, or risk being sidelined in a market increasingly dominated by "business tokens." As one X user put it, "Even haters are accepting XRP's true potential," signaling optimism amid the scrutiny.