Headline: Майк Новограц: XRP и Cardano должны продемонстрировать свою ценность или потеряют конкурентоспособность Translation: Mike Novogratz: XRP and Cardano Must Demonstrate Their Value or Lose Competitiveness

Tokens such as XRP from Ripple and ADA from Cardano must demonstrate their actual utility, or they risk being outperformed by more successful competitors, according to Galaxy Digital’s CEO Mike Novogratz.

In a conversation with the head of research, Alex Thorne, the company’s leader emphasized that the cryptocurrency market is shifting away from “narrative-based tokens” towards those that have a solid business foundation.

With each market cycle, investors are presented with an increasing number of options, making it harder to maintain community engagement. Novogratz pointed out that tokens that only survive thanks to a loyal user base are likely to be outdone by those that generate profits and provide measurable value.

In his view, likely winners will include Bitcoin, which has already established itself as a form of currency, and coins from protocols that will genuinely serve as platforms for business development.

“Charles Hoskinson, God bless him, has kept the Cardano community engaged, even though not many are using the blockchain. They have a strong community, similar to XRP. Will they be able to maintain it with the growing number of alternatives?” Novogratz pondered.

He mentioned the Hyperliquid token as an example of an asset with clear value. The exchange allocates 98% of its profits to the buyback and burning of HYPE, which acts as an investment akin to stocks.

“I believe this is the future of tokens. You will see good coins trading successfully just as quality real assets do,” said the co-founder of Galaxy.

Novogratz predicts that the industry will undergo a transformation over the next one to three years. During this period, cryptocurrency exchanges and wallets will evolve into neobanks, offering stablecoins, tokenized stocks, and money market products.

In September, the entrepreneur admitted that he had underestimated the resilience of XRP—he did not expect the token to survive the SEC’s lawsuit against Ripple. The litigation lasted for over four years.

Nevertheless, questions regarding the practical application of the coin from the California fintech company are regularly raised.

In November, Matthew Sigel, head of digital asset research at VanEck, and Scott Melker, host of The Wolf Of All Streets podcast, expressed doubts about XRP’s utility. At that time, Ripple’s CTO David Schwartz confirmed that the token’s concept does not include generating passive income. Co-founder of XAO DAO, Santiago Velez, clarified that the primary function of the asset is to serve as a neutral intermediary currency for transactions.

On November 13, the trading of a spot XRP ETF by Canary Capital began in the USA. The turnover of the debut session, amounting to $58 million, was the highest among all exchange-traded funds launched this year. After its launch, the products recorded no weeks of outflows, in contrast to leading market products based on Bitcoin and Ethereum.

The price of Ripple’s token is expected to continue consolidating in the new year, with any strengthening of the upward trend relying on additional catalysts. This is the conclusion drawn by experts interviewed by Cointelegraph.

“We still believe that the second half of 2026 will provide more favorable conditions for risk assets in general. In the short term, we observe a bearish sentiment towards altcoins until BTC consolidates or finds a bottom,” stated Jake Kennis, senior analyst at Nansen.

He refrained from making predictions regarding specific price levels for XRP but highlighted several favorable factors for the coin.

Jesus Perez, CEO of Posidonia21 Capital Partners, also suggested a sideways trend for XRP at the beginning of the year.

“Growth potential is likely to depend more on the strength of the narrative and market sentiment than on fundamental transformations,” he added.

The implementation of staking could act as a potential driver. However, Perez noted that the discussion of the mechanism for generating additional income in XRP is still in its early stages.

It’s worth mentioning that on-chain investigator ZachXBT compared the operational models of Ripple, Cardano, and Hedera to financial pyramids.