Headline: Новограц предостерегает о рисках для XRP и Cardano в мире бизнес-ориентированных токенов Translation: Novogratz warns of risks for XRP and Cardano in the world of business-oriented tokens.

Tokens such as XRP from Ripple and ADA from Cardano need to demonstrate their genuine utility, or they risk being overshadowed by more successful competitors. This assertion was made by Galaxy Digital’s CEO, Mike Novogratz.

In a discussion with head of research Alex Thorn, he highlighted that the cryptocurrency market is shifting away from «narrative-based tokens» toward those with a solid business foundation.

With each market cycle, investors encounter an increasing array of options, making it more challenging to maintain community engagement. Novogratz emphasized that tokens relying solely on a loyal user base will falter against those that generate profit and deliver measurable value.

He believes that Bitcoin, which has already established itself as a form of currency, and protocol coins that will genuinely serve as business-building platforms, will emerge as likely winners.

«Charles Hoskinson, God bless him, has kept the Cardano community intact, even though not many use the blockchain. They have a strong community, similar to XRP. Will they be able to maintain it as more and more alternatives emerge?» Novogratz pondered.

As a case in point, he cited the token Hyperliquid, whose exchange allocates 98% of its profits to buybacks and burn HYPE, which acts as an investment akin to stocks.

«I believe this is the future of tokens. You will see how quality coins perform well in trading, just like quality real assets,» said Galaxy’s co-founder.

Novogratz predicts that the industry will undergo a transformative period over the next one to three years. During this time, crypto exchanges and wallets will evolve into neobanks offering stablecoins, tokenized stocks, and cash market products.

In September, the entrepreneur admitted that he had underestimated the resilience of XRP—he did not expect the token to survive the SEC lawsuit against Ripple. This legal battle lasted for over four years.

However, questions regarding the actual use of the coin from the California fintech company continue to arise.

In November, doubts about XRP’s utility were expressed by Matthew Sigel, head of digital asset research at VanEck, and Scott Melker, host of The Wolf Of All Streets podcast. At that time, Ripple’s CTO David Schwartz confirmed that the token’s concept does not include generating passive income. Co-founder of XAO DAO Santiago Vélez clarified that the primary function of the asset is to serve as a neutral intermediary currency for transactions.

On November 13, trading of the spot ETF based on XRP by Canary Capital commenced. The turnover of its debut session, amounting to $58 million, turned out to be the highest for any exchange-traded fund launched this year. Following the launch, the products did not experience any weeks of outflows, unlike market leaders based on Bitcoin and Ethereum.

The price of Ripple’s token is expected to continue consolidating in the new year, with any strengthening of the upward trend dependent on additional catalysts. This is the consensus among experts surveyed by Cointelegraph.

«We still believe that the second half of 2026 will offer more favorable conditions for risk assets overall. In the short term, we are seeing a bearish sentiment toward altcoins until BTC consolidates or establishes a bottom,» said Jake Kenness, senior analyst at Nansen.

He refrained from predicting specific price levels for XRP but pointed out several positive factors for the token:

Jesus Perez, CEO of Posidonia21 Capital Partners, also speculated on a sideways trend for XRP at the beginning of the year.

«The growth potential will likely depend more on the resilience of the narrative and market sentiment than on fundamental transformations,» he added.

The implementation of staking could be a potential driver. However, discussions regarding a mechanism for additional returns in XRP are still in their infancy, noted Perez.

For reference, blockchain investigator ZachXBT compared the operational models of Ripple, Cardano, and Hedera to financial pyramids.