The Shifting Crypto Market: Why XRP and Cardano Face Pressure to Prove Real Value

The cryptocurrency landscape is undergoing a fundamental transformation, and not all projects are positioned to adapt. Galaxy Digital’s CEO Mike Novogratz recently highlighted a critical challenge facing several prominent tokens: their heavy reliant on community enthusiasm rather than demonstrated functionality.

Narrative-Driven vs. Utility-Focused Assets

According to Novogratz’s market assessment, the industry is experiencing a transition away from hype-dependent projects toward assets that deliver concrete business outcomes. This shift marks a maturation phase in crypto investing, where speculation tied to social narratives is giving way to investor demand for measurable, real-world applications.

XRP and Cardano (ADA) exemplify this tension. Both projects have cultivated passionate communities and strong followings, yet face mounting questions about whether their community support can translate into sustained market relevance. Novogratz raises a pertinent concern: can these platforms maintain momentum as the market’s focus increasingly concentrates on tangible value creation?

Reimagining Token Valuations

The CEO’s perspective reveals an important distinction in how the market now evaluates different assets. Bitcoin has established a relatively clear valuation framework rooted in its role as a store of value and medium of exchange. In contrast, alternative tokens are increasingly scrutinized using corporate valuation models—essentially treating them as equity-like instruments with corresponding performance expectations.

This evaluation shift implies that projects like Ripple’s XRP and Cardano must demonstrate business traction comparable to traditional companies seeking investment. Community enthusiasm alone no longer suffices; institutional and sophisticated investors now demand evidence of adoption, revenue generation, or irreplaceable technological advantages.

The Hyperliquid Question

Interestingly, Novogratz pointed to Hyperliquid as an emerging model worth monitoring. Structured with equity-like characteristics, this token represents a potential evolution in how crypto projects might be designed and valued going forward—blending tokenomics with more conventional financial mechanics.

What This Means for the Market

The crypto sector continues to mature, with clearer distinctions emerging between projects capable of sustaining growth through fundamentals versus those dependent on cyclical hype. For investors and projects alike, the message is unmistakable: the era of narrative-driven valuations is fading, replaced by a market demanding concrete utility and business viability.