Mike Novogratz, CEO of Galaxy Digital, warned that by 2025 cryptocurrencies must prove their real utility if they want to maintain market positions. He notes that mere community enthusiasm no longer guarantees a project's long-term viability, and investors are increasingly focusing on concrete business applications and sustainable revenue models. Regulatory changes and growing institutional interest reinforce this trend, shifting the focus from hype to project economics.
Mike Novogratz's Warning on Cryptocurrency Survival
Novogratz explicitly points to the need for tangible utility demonstration for projects like XRP and Cardano (ADA). According to him, loyalty and active communities are important in early stages, but insufficient to pass the next market cycle. He emphasizes that projects must showcase real business applications and develop sustainable economic mechanisms to withstand market pressures in 2025.
Cryptocurrency Market Evolution by 2025
The market is gradually shifting its emphasis from technological innovation and community to demands for real value and applicability. Regulatory changes and increased institutional investor participation accelerate this transition, making verifiable use cases and sustainable revenue sources more critical. As a result, projects lacking clear commercial functions may find themselves at a disadvantage compared to those providing real services.
Analysis of Cryptocurrency Revenue Structures
Novogratz and analysts highlight the necessity of sustainable economic models: blockchain projects must generate value comparable to traditional businesses. To assess utility, attention is paid to partnerships with enterprises, developer activity, protocol-generated revenues, and stable transaction volumes. These metrics help determine whether a project has a genuine user base and payment mechanisms rather than just speculative demand.
Community Loyalty vs. Business Fundamentals
Communities remain an important factor for initial technology adoption, but the long-term value of an asset is increasingly defined by its practical use and revenue sources. XRP exemplifies progress through payment solutions and expanding partnerships with financial institutions, while Cardano bets on academic research and applications in government projects. For a detailed comparison of ADA's prospects, see Cardano forecast, and for insights on XRP's adoption and market expectations, see Ripple forecast.
Regulatory Environment and Its Impact
Regulators are increasing focus on the economic substance of projects, not just their technical features, which changes the criteria for evaluating cryptocurrencies. In particular, oversight by bodies like the U.S. Securities and Exchange Commission (SEC) underscores the importance of real functionality and consumer protection. Under regulatory pressure, projects that fail to demonstrate practical value may face challenges from investors and markets.
Blockchain Future Outlook
Analysts expect further integration of distributed ledger technologies across various sectors, primarily financial services, but also other fields requiring verifiable business solutions. Successful networks will be those demonstrating cross-industry applications and sustainable revenue streams. Ultimately, for long-term viability, projects will need to confirm their utility in real-world scenarios rather than relying solely on community support and marketing.
Why This Matters
If you mine with one or more devices in Russia, deciding which tokens to hold your rewards in becomes increasingly important. Projects with proven utility typically offer greater liquidity and stable token demand, affecting ease of exchange and the long-term value of your holdings. Meanwhile, regulatory changes may impact access to certain services and exchanges, so understanding which projects have solid business foundations helps reduce operational risks.
Even if your primary goal is short-term mining profit, knowing which networks develop real use cases and partnerships helps select coins with more predictable demand. This is especially important when holding tokens on balance awaiting an optimal selling moment. Finally, projects with real-world use tend to gain institutional support, which can influence market stability around those tokens.
What to Do?
- Monitor partnerships and implementations: track announcements of collaborations with banks and governments and assess their practical significance.
- Evaluate utility metrics: watch developer activity, transaction volumes, and protocol revenues rather than just price.
- Diversify risks: avoid holding all rewards in one coin if the project lacks proven utility.
- Comply with regulations: stay informed about local and international regulatory news to avoid issues with fund withdrawals and service operations.
- Optimize operational costs: reduce electricity expenses and maintain equipment to withstand market fluctuations.
In Brief
Novogratz signals a shift in criteria: by 2025, real utility and business functions matter more than project hype. XRP and ADA are named among those who must confirm their value through practical applications or face tougher competition in the changed landscape.