Mike Novogratz Says Community Loyalty Won’t Save XRP and Cardano in a Maturing Market

• Novogratz argues that the market is moving away from the “narrative-driven” era into a “business-driven” era.
  
• For legacy assets like XRP and Cardano, the Galaxy Digital CEO believes the next 12 to 36 months are a critical checkpoint.
  
• He sees Hyperliqued and similar projects that behave more like traditional equity as the future of tokenomics.
  

In a recent year-end discussion with Galaxy Research’s Alex Thorn, Galaxy Digital CEO and founder Mike Novogratz outlined a fundamental shift in the crypto landscape. He argues that the market is moving away from the “narrative-driven” era, where a strong story and a loyal community were enough to sustain a multi-billion dollar valuation, into a “business-driven” era.

Novogratz believes that the brunt of the issue lies in the evolution of cryptocurrencies. The focus is on more tangible value as opposed to excitement and hype, and the market is beginning to distinguish between assets that serve as de facto money and those that function as businesses.

Related: “The XRP Army proved me wrong,” Galaxy Digital CEO Mike Novogratz Concedes

For legacy assets like XRP and Cardano (ADA), the Galaxy Digital CEO sees the next 12 to 36 months as a critical checkpoint. While acknowledging the remarkable resilience of these communities through bear markets and lawsuits, Novogratz questioned whether social media sentiment can continue to carry them as the market matures.

In his view, Bitcoin is an obvious example of a crypto that has already won the race to become digital gold, being established as money to the point that it doesn’t need to justify its existence through complex dApps. 

On the other hand, protocols like Cardano and XRP occupy a different category, competing as infrastructure (payments and smart contracts). Novogratz maintains that “the moment you’re not money… you’re just a business,” and businesses are valued based on their output and utility.

Hyperliquid as the new model

Novogratz pointed to newer models, such as the decentralized exchange Hyperliquid, as the future of tokenomics. He noted that Hyperliquid functions more like an equity investment because it uses a large portion of protocol profits for buybacks and burns, directly linking the token’s value to the platform’s success.

Related: Cardano Founder Says Big Banks Are Copying XRP at 100x Beyond Their Ambitions

For XRP and Cardano to remain relevant, Novogratz argues they must transition from being “fan favorites” to essential infrastructure for the global economy.

As 2026 approaches, he predicts a convergence where crypto wallets evolve into neobanks offering tokenized stocks and stablecoins. In this more mature ecosystem, the so-called narrative will no longer be enough. 

For Novogratz, the message is clear: it is time for these protocols to start being important by solving real-world problems, or risk being sidelined by a market that is finally looking at the numbers.