XRP and Cardano need to prove they're useful beyond just fans, Mike Novogratz says

• Novogratz noted that while XRP and ADA have strong fan bases, their adoption remains weak.
• He emphasized that tokens not considered 'money' like bitcoin will be valued based on revenue, usage, and measurable value, similar to traditional businesses.

Ripple-linked payments token XRP and smart-contract platform ADA$0.3717 must demonstrate genuine utility beyond loyal communities as the cryptocurrency market matures from hype-driven narratives to fundamentals-focused assets, Galaxy Digital Founder and CEO Mike Novogratz said in a recent interview.

"Can Ripple hold it together? Can Cardano hold it together?” Novogratz said during a conversation with Galaxy's Head of Research Alex Thorn on Friday.

He highlighted that while XRP and Cardano's native token, ADA, boast resilient fan bases, their on-chain activity remains relatively weak.

"Charles Hoskinson, bless his soul, he's kept the Cardano community with a blockchain that people don’t really use a lot," Novogratz said. "He’s had a strong community just like XRP. Can you keep it together when there are more and more options?"

Novogratz argued the broader market is evolving: Tokens that aren't "money" like Bitcoin will be valued like traditional businesses based on revenue, usage, and measurable value.

Fintech company Ripple uses the XRP token as a bridge asset for fast, low-cost cross-border payments through its RippleNet network, with partnerships across banks and fintechs. Yet, critics have long pointed out that its organic activity remains low and doesn't justify XRP's multi-billion dollar market valuation.

XRP currently holds a market capitalization of approximately $115 billion, ranking it fifth among cryptocurrencies, according to CoinMarketCap data. Cardano's ADA sits at around $13-14 billion, placing it around the 12th spot.

On-chain metrics underscore Novogratz's concerns about adoption. At press time, the number of active XRP addresses was 16,703, according to data source CryptoQuant.

Cardano's active addresses tallied over 19,000. Both numbers are significantly lower than other projects such as Solana, which typically sees millions in active addresses driven by DeFi, memes, and apps. Solana's SOL token has a market cap of $72 billion, the seventh-largest in the world.

Novogratz contrasted community-driven tokens with emerging examples like Hyperliquid, a decentralized perpetuals exchange that generates real revenue and burns most profits to buy back its token, creating equity-like economics.

2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.

This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.

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