Galaxy Digital Chief Questions Valuation Support
Galaxy Digital CEO Mike Novogratz issued a sharp check on the valuations of XRP and Cardano (ADA). He argued the tokens lack the on-chain utility required to sustain their multi-billion dollar market caps. Speaking in a recent interview, Novogratz contrasted these legacy assets with the institutional adoption seen in Bitcoin and the developer activity on Solana.
His core thesis targets the disconnect between price and product. While Bitcoin functions as a store of value and Ethereum powers the DeFi economy, Novogratz categorized XRP and Cardano as “community coins” driven by retail loyalty rather than fundamental demand.
I don’t see the developers. I don’t see the institutional capital flowing into those ecosystems. It is a mystery to me how they sustain these valuations.
Market Response and Community Backlash
The comments triggered immediate friction across social channels. XRP (trading near $0.58) and ADA ($0.45) saw muted price action despite the bearish commentary. Supporters pointed to Ripple’s recent stablecoin initiatives and Cardano’s governance upgrades as evidence of utility. Novogratz dismissed these counterpoints. He maintained that capital flows are consolidating around chains with tangible transaction fee revenue.
This is not the first time the Galaxy founder has critiqued the “Army” coins. His firm remains heavily allocated to Bitcoin, Ethereum, and Solana. The warning suggests Galaxy anticipates a capital rotation out of older altcoins as institutional players enforce stricter due diligence standards.
