Mike Novogratz, founder and CEO of Galaxy Digital, stated that projects like XRP and Cardano need to prove their utility or risk losing relevance. He shared this view in a conversation with Alex Thorn, head of corporate research at Galaxy Digital, where they discussed the outlook for Bitcoin, altcoins, and the broader market. Novogratz emphasized that in today’s competitive environment, projects have limited time to confirm their value.
Mike Novogratz’s Statement on XRP and Cardano
Novogratz noted that many crypto assets "that are not money" previously grew largely due to hype, but this effect is gradually fading. According to him, when a project doesn’t become money, it risks turning into just a business, which leads to valuation decline and increased competition.
In the discussion, he directly questioned whether XRP can endure and if Cardano will maintain its relevance, adding that much depends on the projects’ ability to retain their communities. For more on why projects need to prove their utility, see the article XRP and ADA.
Competitive Dynamics in the Crypto Market
The Role of Community in Maintaining Cryptocurrency Value
Novogratz highlights community as a key value factor for blockchains: projects with active ecosystems maintain competitive advantages. However, he notes that even strong communities require ongoing support, or else the technology remains just part of a business without sustainable value.
Comparing Ethereum and Solana with Other Blockchains
As an example, he mentions blockchains like Ethereum and Solana, which host new solutions and derive much of their value from their communities. Novogratz points out this doesn’t guarantee automatic success for other projects; the question is whether they can replicate this effect and retain users.
He also emphasized the role of ecosystem leaders: the mention of Charles Hoskinson illustrates that leaders can influence development, though this doesn’t always translate into widespread network adoption.
Crypto Market Development Prospects
Novogratz believes the industry is headed for a transformation that will occur gradually over several years. He stresses that this process is already underway and will reshape the balance of power among projects.
Additionally, Galaxy Digital experts have previously stated that Bitcoin’s 2026 outlook remains "uncertain" due to multiple market and macroeconomic factors, which also affect the overall dynamics of altcoins and utility-value projects.
Example of a Successful Project
In the conversation, Novogratz cited the decentralized exchange Hyperliquid as a project with a clear utility model. He noted that Hyperliquid directs up to 98% of its revenues to buyback and burn of the HYPE token, serving as an example of a mechanism that strengthens token value.
Why This Matters
If you mine or operate devices, changes in altcoin relevance affect demand and liquidity of the tokens you handle, so it’s important to monitor not only prices but also project sustainability. The market transformation itself doesn’t necessarily change miner operations directly, but declining interest in specific projects can reduce market opportunities for tokens with low utility value.
It’s especially important to watch community strength and practical utility: as Hyperliquid shows, buyback and burn mechanisms are one way to support a token, while projects without such mechanisms are more vulnerable. Even if you don’t hold altcoins, overall market shifts impact liquidity and forecasts for various tokens.
What to Do?
- Evaluate token utility: before investing or holding, study the project’s real use cases and how active its ecosystem is.
- Monitor the community: developer and user activity often signals a project’s long-term viability.
- Consider the token model: projects with value-support mechanisms (like Hyperliquid) may behave differently in the market than tokens without them.
- Maintain reserves and check profitability: if you operate from one to a thousand devices, track token profitability and liquidity to respond quickly to changes.
These simple steps help you navigate market changes faster and make decisions without emotional hype. Continuous monitoring and attention to project utility reduce risks amid potential shifts in crypto interest.