Mike Novogratz, chief executive officer of Galaxy Digital, has warned that XRP must prove clear real-world usefulness by 2026 or risk fading into irrelevance as the cryptocurrency market matures and investors demand tangible value.
Speaking on the evolving direction of digital assets, Novogratz said the industry is moving into what he described as a “prove it” phase, where long-term survival will depend less on community enthusiasm and more on demonstrable economic function. In his view, tokens that fail to integrate meaningfully into financial infrastructure or generate measurable utility will struggle to justify their valuations.
As of December 28, 2025, XRP is trading at approximately US$1.87, reflecting relatively stable price action despite broader debates around its long-term prospects. Market sentiment, however, is increasingly aligned with Novogratz’s position that price resilience alone is not enough without sustained adoption and use.
He drew a clear distinction between Bitcoin and most alternative cryptocurrencies, arguing that Bitcoin has already established itself as a macro asset akin to digital money. By contrast, assets such as XRP and Cardano, he said, are being reassessed more like businesses, whose valuations are typically driven by productivity, revenue potential, and competitive advantage rather than narrative or loyalty.
Novogratz noted that competition within the sector is intensifying, with projects that feature strong on-chain activity, embedded demand mechanisms such as buybacks or token burns, and clear roles in payments, settlement, or decentralized finance better positioned for long-term relevance. Without comparable traction, he cautioned, legacy altcoins could be crowded out by more efficient or innovative platforms.
The 2026 timeline, according to Novogratz, represents a critical inflection point. Projects that can demonstrate scalable, real-world applications by then are likely to retain investor confidence, while those that cannot may see capital rotate elsewhere as the market prioritises utility over speculation.
XRP spot ETFs attract over US$1.2bn in assets as institutional interest builds
