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- Mike Novogratz says utility now matters more than hype in crypto markets.
- XRP and Cardano face pressure to prove real business value.
- Recent XRP losses highlight risks for tokens without strong fundamentals.
The crypto market is entering a new phase. Galaxy Digital CEO Mike Novogratz believes the shift has already begun. He says future winners will rely on real use cases, revenue, and measurable value. Community loyalty alone may no longer protect token prices.
During a recent talk on the long-term trend in markets, Novogratz emphasized the assessment of digital assets by investors. According to Novogratz, every new cycle in markets leads to increased competition. This is why it is difficult to stay in the markets simply on the reputation and credibility factor. Digital assets today need to prove the worth of their price in the same way a genuine business does.
As Novogratz said, “The early days of crypto cycles rewarded narratives. It’s a time in which a vision, a belief, propelled a lot of these assets to, you know, heights. Those days are behind us. People today demand evidence of network functions, adoption, and revenue.” For instance, according to Novogratz, XRP and Cardano’s success is a result of a devoted fan base.
Galaxy CEO Warns Community Hype May Fade
These two projects have huge support bases and histories. But he observed that the strength within the communities might decrease due to the increasing number of alternative options. Developers and users now have more options. Capital flows quicker into effective platforms.
“Now we’re in an environment where tokens that are not showing real demand are at risk of being left behind,” said Novogratz. He thinks that in order for the blockchains to be valuable, they should be places where product developers make products that people use on a daily basis. Otherwise, he thinks that token prices will be unable to move forward in the next cycle.
As per Novogratz, the uniqueness about Bitcoin lies in the fact that it is a form of money. Other tokens lack this aspect. As soon as the token loses the story of money, markets view it as an asset for businesses.
He gave an example of this new paradigm by pointing out Hyperliquid. This platform is connected with its value based on business performance. Most of its earnings are used for buying its own tokens in order to reduce its supply in the market.
Crypto Market Trends Favor Efficient Projects
Novogratz looks forward to seeing more projects involve designs resembling this. Novogratz further sees a future where strong tokens trade in the same manner that productive assets trade. Weak tokens, in Novogratz’ view, can decline in prominence with capital flowing to efficient networks.
Evernorth Holdings, a Treasury management entity associated with Ripple’s executives, currently holds large unrealized losses. Evernorth purchased about 389 million XRP for approximately 947 million dollars. The value at the moment is at 724 million dollars.
This trend is part of a general market correction. XRP is down by a total of 16 percent in the last month. Bitcoin, on the other hand, slid below major levels as well. This happened even as there have been continued inflows of funds into US-listed XRP exchange-traded funds.
According to Novogratz, this trend is likely to continue for the next one to three years. He predicts that wallets, as well as exchanges, will transform into digital banks. The services that these systems are likely to offer have not been specified, but this could include stablecoins, stocks, as well as money market solutions.
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