Investors will increasingly favor tokens with measurable value and profits.
Galaxy Digital CEO Mike Novogratz has sounded a clear warning for some major cryptocurrencies. He says tokens like XRP and Cardano (ADA) risk losing relevance if they fail to show real-world utility.
According to Novogratz, the crypto market is undergoing a major shift. He describes it as moving from “narrative-driven tokens” to “business-driven tokens”. In other words, investors will increasingly favor cryptocurrencies that deliver measurable value and profits rather than hype or stories.
Over the past decade, many cryptocurrencies gained popularity based on speculation or community enthusiasm. However, Novogratz argues that the next phase of crypto growth will depend on practical applications.
For example, a token that enables fast, 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 crypto market shift means that projects without tangible business models or real-world adoption could struggle to maintain their market share.
Novogratz also predicts that the structure of crypto platforms could change. He foresees a 1-3 year transformation in which wallets and exchanges start to operate more like neobank platforms.
In this scenario, crypto wallets could offer services similar to traditional banks, including payments, lending, and other financial tools, all while leveraging blockchain technology. This crypto market shift could make digital assets more integrated into everyday financial life and appeal to mainstream users.
For investors, Novogratz’s warning is a reminder to focus on fundamentals, not just hype. Tokens that fail to demonstrate real-world utility may face declining interest and lower long-term value.
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 coming years may redefine which cryptocurrencies dominate the market. XRP, Cardano, and other narrative-driven tokens will need to prove their value beyond hype. Meanwhile, the rise of business-driven tokens and neobank-like platforms could reshape the entire crypto landscape, bridging the gap between traditional finance and blockchain innovation.
