Galaxy Digital CEO Mike Novogratz has issued a clear warning regarding some major cryptocurrencies. He says tokens like XRP and Cardano (ADA) risk losing relevance if they fail to demonstrate real-world utility.
According to Novogratz, the crypto market is experiencing a major shift. He describes it as going from “story-driven tokens” has “business-focused tokens”. In other words, investors will increasingly favor cryptocurrencies that generate measurable value and profits over hype or stories.
From hype to real usefulness
Over the past decade, many cryptocurrencies have gained popularity through speculation or community enthusiasm. However, Novogratz says the next phase of crypto growth will depend on practical applications.
For example, a token that enables fast and secure payments, or a blockchain that powers a widely used decentralized application, is more likely to succeed than one that relies solely on marketing or social media attention.
This shift in the crypto market means that projects without tangible business models or real-world adoption could struggle to maintain market share.
Portfolios can evolve in the market
Novogratz also predicts that the structure of crypto platforms could change. He foresees a transformation within 1-3 years in which wallets and exchanges will begin to operate more like neobank platforms.
In this scenario, crypto wallets could offer similar services to traditional banks, including payments, loans, and other financial tools, while leveraging blockchain technology. This shift in the crypto market could further integrate digital assets into everyday financial life and attract mainstream users.
What this means for investors
For investors, Novogratz’s warning is a reminder to focus on fundamentals, not hype. Tokens that fail to demonstrate real-world utility may see their interest wane and their long-term value diminish.
It also highlights a broader trend in the crypto industry: sustainable growth relies on functionality and adoption. Investors are likely to reward projects that solve real problems and generate consistent usage.
The crypto market shift
The coming years could redefine which cryptocurrencies dominate the market. XRP, Cardano and other narrative tokens will need to prove their value beyond the hype. Meanwhile, the rise of enterprise-focused tokens and neobank-like platforms could reshape the entire crypto landscape, bridging the gap between traditional finance and blockchain innovation.
