Mike Novogratz warns the 16,703 active addresses it owns XRP (CRYPTO:XRP) can’t justify its $115 billion market cap, but social media conversations are nonetheless debating large institutional accumulation.
What Happened: Galaxy Digital (TSX:GLXY) Founder and CEO Mike Novogratz challenged XRP Cardano (CRYPTO:ADA) Unpleasant to show A real utility that goes beyond loyal communities, as the cryptocurrency market matures from hype-driven narratives to fundamentals-focused assets.
“Can Ripple keep it together? Can Cardano keep it together?” Novogratz said this during a conversation with Galaxy’s Head of Research Alex Doorn on Friday.
He emphasized that while XRP and Cardano boast a resilient fan base, their on-chain activity remains relatively weak.
“Charles Hoskinson, thank God, he kept the Cardano community with a blockchain that people don’t really use much,” Novogratz said.
“Can you keep it together when there are more and more options?” he added.
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CEO of DAG Family Office Jake Clover claimed on
He states that XRP will transform into “the foundation of international finance” and offers “nothing in the crypto space offers this level of certainty and potential for massive returns.”
In December itself, Claver said he was “99.99999% confident” that XRP would make a big move before the end of the year and reiterated his belief that the token could eventually reach triple-digit prices, citing the expansion of ETFs, changing global liquidity, regulatory clarity and macroeconomic disruptions.
The numbers don’t lie
On-chain data underlines Novogratz’s concerns, as the number of active XRP addresses stood at 16,703, according to data source CryptoQuant.
Cardano’s active addresses exceeded 19,000.
Both figures are significantly lower than Solana (CRYPTO: SOL)which typically sees millions of active addresses, powered by DeFi, memes and apps.
Yet the market capitalizations tell a different story.
Despite its much higher network usage, Solana ranks seventh worldwide with a market value of almost $72 billion.
XRP, on the other hand, ranks fifth with a market capitalization of around $115 billion, while Cardano’s ADA, with similarly muted activity, trades between $13 and 14 billion and occupies roughly the twelfth spot.
The shift to business fundamentals
Novogratz argued that the broader market is evolving: tokens that don’t look like “money.” Bitcoin (CRYPTO: BTC) Like traditional companies, they will be valued based on turnover, usage and measurable value.
He contrasted community-driven tokens with emerging examples such as Hyperfluid (CRYPTO: HYPE)a decentralized exchange of perpetuals that generates real revenue and burns most of the profits to buy back its token, creating an equity economy.
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