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Novogratz Says XRP and Cardano Must Prove Utility as Crypto Shifts to Profit-Backed Tokens

The Galaxy Digital CEO points to Hyperliquid’s buyback model to illustrate investor preference for measurable value.

Overview

  • Novogratz argues Bitcoin now functions as money, while most other tokens will be valued like businesses based on revenue and value capture.
  • He warns that XRP and Cardano, sustained by loyal communities, must demonstrate real-world use or risk losing ground in future cycles.
  • He cites Hyperliquid’s design, which allocates roughly 98% of profits to token buybacks and burns, as a template for equity-like tokenomics.
  • He forecasts a one-to-three-year industry transition in which wallets and exchanges evolve into neobank-style platforms offering stablecoins, tokenized equities, and money-market products.
  • Coverage notes XRP trading near $1.85 with weak momentum and Cardano near $0.35 with slow adoption, with XRP drawing renewed attention following U.S. spot ETF launches but facing caution without clearer utility.