Crypto Giants Question XRP and Cardano's Future: Is Community Enough Without Real Utility?
In a rapidly evolving cryptocurrency landscape, the leadership at Galaxy Digital, a prominent investment firm, is raising critical questions about what truly sustains value in the long term. CEO Mike Novogratz and Head of Research Alex Thorn recently cast a spotlight on XRP and Cardano, probing whether even their most devoted communities can weather increasing competition if genuine utility fails to expand. Their concerns highlight a pivotal moment for these assets as capital flows become more selective.
The Core Debate: Community Versus Tangible Value
Mike Novogratz framed the utility debate through the lens of capital allocation, emphasizing that investors gravitate towards projects offering clear, demonstrable value amidst a sea of alternatives. He suggested that if traditional capital can be directed towards ventures like SpaceX, then crypto assets must similarly prove their worth. Novogratz acknowledged the deeply committed communities behind both XRP and Cardano but openly questioned if this loyalty could be maintained without tangible, expanding real-world usage. He pointed to Cardano's founder, Charles Hoskinson, noting his success in fostering community despite the perception of limited practical application, and posed a direct challenge: "Can you keep it together when there are more and more options?" This skepticism underscores a broader industry shift, where blockchain ecosystems are compelled to show clear usage, robust revenue models, or direct value flows tied to their tokens, a process Novogratz believes takes years, not months.
XRP and Cardano's Proactive Steps Towards Real-World Relevance
Coincidentally, these critical observations from Galaxy Digital arrive as both Cardano and XRP actively work to bolster their utility narratives. Cardano is reinforcing its practical relevance through initiatives like the Midnight sidechain, a privacy-focused network designed for confidential smart contracts and selective data disclosure. This move aims to attract enterprise and institutional use cases, particularly in areas where public blockchains have historically struggled. XRP, through Ripple's strategic efforts, is also forging a distinct path to enhance the XRP Ledger's utility. Key developments include expanding the deployment of Ripple USD (RLUSD), its US dollar-backed stablecoin, across various Layer-2 networks. Furthermore, Ripple has been aggressive in strengthening the XRP ecosystem through significant acquisitions—reportedly spending around $4 billion in 2025—and striking partnerships. A recent collaboration with Dopplerr Finance, for instance, aims to explore XRP-based yield infrastructure and the tokenization of real-world assets (RWA) on the XRP Ledger, signifying a crucial step towards diversified utility.
