As the digital asset market enters another period of reassessment, a fresh warning from Galaxy Digital CEO Mike Novogratz is highlighting the standards that may define the next phase of growth.
Rather than focusing on price momentum or short-term sentiment, Novogratz is urging investors to consider whether major tokens can justify their place through real economic value.
His comments, shared in a recent discussion highlighted by Wu Blockchain, indicate a market that is becoming less forgiving of projects that cannot demonstrate practical use and sustainable business models.
Galaxy Digital CEO Mike Novogratz warned that XRP and Cardano (ADA) risk losing relevance if they fail to demonstrate real-world utility, arguing the crypto market is shifting from “narrative-driven tokens” to “business-driven tokens” with measurable value and profits. He expects…
— Wu Blockchain (@WuBlockchain) December 27, 2025
Utility Over Loyalty for Established Tokens
Novogratz argued that assets such as XRP and Cardano face a growing risk of losing relevance if they fail to show measurable real-world utility.
In his view, parts of the market have long depended on strong community loyalty to sustain attention and demand. However, he believes that the dynamic is weakening as each cycle introduces more competing projects and higher expectations from participants.
According to Novogratz, tokens that rely primarily on narrative appeal or a devoted user base may struggle to keep pace with rivals that can point to revenue generation, active usage, and clear economic impact.
The implication is that future leaders will be those networks that function as genuine platforms where developers build applications and users engage in meaningful activity, rather than those sustained mainly by enthusiasm.
He contrasted this with examples of projects designed to create tangible value. One case he referenced was Hyperliquid, where a large share of platform profits is used to buy back and remove tokens from circulation.
Novogratz described this approach as resembling an equity-style structure, where holders benefit from the underlying performance of the business rather than speculative expectations alone.
From Narratives to Business-Driven Models
The Galaxy Digital chief framed this evolution as a shift from what he described as narrative-driven tokens toward business-driven ones. He expects that over the next one to three years, the industry will undergo a structural transformation that places greater weight on profits, efficiency, and utility. In this environment, projects unable to adapt may gradually be sidelined as capital flows toward those with clearer fundamentals.
Novogratz made these remarks during a broader conversation with Alex Thorn, Galaxy Digital’s Head of Firmwide Research, centered on outlooks for Bitcoin, tokenization, real-world assets, and artificial intelligence heading into 2026.
Within that context, he suggested that Bitcoin would remain a central pillar, while other successful networks would need to prove they can support real economic activity at scale.
A New Role for Wallets and Exchanges
Looking ahead, Novogratz also projected changes in the infrastructure layer of cryptocurrency. He anticipates that wallets and exchanges could evolve into platforms resembling neobanks, offering services such as stablecoin payments, tokenized equities, and money market products.
This development, in his assessment, would further blur the line between traditional finance and digital assets, reinforcing the demand for tokens tied to functioning businesses.
Together, his comments outline a future where survival may depend less on reputation and more on results, signaling a decisive test for established names like XRP and Cardano as the market moves toward a more utility-focused standard.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on X, Facebook, Telegram, and Google News
