Michael Novogratz Sounds the Alarm on XRP and Cardano
A seasoned crypto investor explains why community loyalty may no longer protect certain digital assets.
A Stark Assessment From a Crypto Veteran
When Michael Novogratz, chief executive of Galaxy Digital, speaks about market risk, investors tend to listen. Novogratz recently delivered a blunt message, naming two cryptocurrencies he believes are on the brink of collapse. Those assets are XRP and Cardano.
His concern is not driven by short term price action. It is rooted in a deeper issue that often separates durable investments from fading stories: real world usefulness. In Novogratz's view, enthusiasm and loyal communities are no longer enough to hold prices at current levels.
Why Community Loyalty Is Losing Its Power
For years, both XRP and ADA benefited from strong, vocal communities. That support helped sustain interest even during quiet development periods. Novogratz argues that the market has changed. With hundreds of blockchains now competing for capital and attention, loyalty alone cannot defend valuations.
According to him, investors are becoming more selective. They want proof of usage, not promises. Projects that fail to demonstrate tangible demand risk seeing their prices slide, regardless of how passionate their followers remain.
XRP and Cardano at a Crossroads
Novogratz believes that both Ripple and Cardano must rethink their development strategies if they hope to avoid serious price pressure. Once considered leaders, these projects now face intense competition from newer platforms offering clearer value propositions.
He openly questioned whether their communities can be sustained in a crowded market where alternatives are plentiful and innovation moves quickly. His message was clear: relevance must be earned repeatedly, not remembered fondly.
A Direct Comment on Cardano's Usage Challenge
Speaking candidly, Novogratz referenced Cardano founder Charles Hoskinson, noting that while Hoskinson successfully built a strong community, the underlying blockchain sees limited practical use. In Novogratz's words, maintaining enthusiasm becomes harder when users are scarce and applications remain thin.
That observation cuts to the core of his argument. Markets reward what works, not what once worked. Without broader adoption, sentiment can fade faster than many expect.
Investor Attention Shifts Toward Fundamentals
One of Novogratz's strongest points is that capital is now flowing toward projects with strong fundamentals. Over the past year, several new crypto initiatives have launched with what he described as impressive success, largely because they offered clear value to users.
As an example, he pointed to the Hyperliquid token buyback and burn program. Initiatives like these show investors that teams are actively managing supply, incentives, and long term sustainability rather than relying on hype.
Crypto Firms Moving Toward the Neobank Model
Looking beyond individual tokens, Novogratz outlined a broader shift in the industry. He expects virtual asset service providers to increasingly compete as neobanks, expanding far beyond simple trading services.
In his forecast, traditional crypto exchanges may soon rebrand, offering money market products, tokenized stocks, and integrated financial services. That evolution, he suggests, will further raise the bar for blockchain projects seeking relevance and capital.
Why Bitcoin Still Commands Confidence
Despite his warnings about XRP and ADA, Novogratz remains optimistic about Bitcoin. He believes the first cryptocurrency is well positioned for a powerful rally in the coming year, with a realistic path toward prices above one hundred thousand dollars.
His confidence stems from Bitcoin's unique role. It is widely held, deeply liquid, and increasingly recognized as a foundational asset in the digital economy. Unlike many altcoins, Bitcoin does not need to reinvent its purpose each cycle.
A Warren Buffett Style Reality Check
From an investment perspective, Novogratz's remarks echo a timeless principle. Assets hold value when they solve real problems and generate consistent demand. Stories may spark interest, but fundamentals keep capital invested.
For holders of XRP and ADA, the message is uncomfortable but useful. Markets do not owe loyalty to past success. They reward adaptation, execution, and relevance.
What Investors Should Watch Next
The future of XRP and Cardano now hinges on execution. Increased usage, clearer economic models, and visible adoption could stabilize sentiment. Without those changes, price pressure may intensify as capital migrates elsewhere.
At the same time, Novogratz's optimism toward Bitcoin and fundamentally driven projects suggests where seasoned investors are looking. In a market crowded with options, attention flows toward what proves its worth quietly and consistently.
A Final Thought for Long Term Investors
Mike Novogratz's warning is not a prediction carved in stone. It is a framework for thinking. Crypto markets are maturing, and patience is shifting from slogans to substance.
As any experienced investor knows, value endures when usefulness is undeniable. In that light, XRP and Cardano face a test, while Bitcoin and fundamentally sound projects continue to set the pace.
