Galaxy Digital Questions XRP, Cardano Utility Amid Crypto Competition

During a YouTube discussion on 2026 expectations, Galaxy Digital CEO Mike Novogratz framed the existential question for cryptocurrencies through the lens of investment choice. “The real question is what an investor chooses when presented with many viable options,” he explained, noting that capital can just as easily flow into ventures like SpaceX. This sets a high bar for crypto assets, which must now compete not just amongst themselves but with the broader universe of high-growth technology investments. Novogratz and Head of Research Alex Thorn specifically highlighted XRP and Cardano as case studies, acknowledging their “deeply committed communities” but questioning the sustainability of that loyalty.

Novogratz pointed to Charles Hoskinson’s success in maintaining the Cardano community over time, despite it being a “blockchain that people don’t really use a lot.” He made similar observations about XRP’s strong following. However, the core inquiry was direct: “Can you keep it together when there are more and more options?” This reflects a broader market dynamic where capital has become more selective, forcing blockchain ecosystems into a race to demonstrate clear usage, revenue models, and value flows tied directly to their tokens. According to Novogratz, this proof of utility “doesn’t happen overnight. It’s probably a year-long process, not a one to three-month process.”

In direct response to the utility imperative, Cardano is actively working to strengthen its practical narrative. The primary vehicle for this effort is the Midnight sidechain, a privacy-focused network designed to support confidential smart contracts and selective data disclosure. Midnight is strategically positioned to attract enterprise and institutional use cases that require compliance-friendly privacy—a significant gap in the public blockchain landscape. By offering a pathway for sensitive commercial and institutional data to interact with a blockchain, Cardano aims to move beyond community support and anchor its value in real-world, high-value applications.

This initiative represents a calculated attempt to answer the questions raised by analysts like those at Galaxy Digital. If successful, Midnight could provide the tangible utility and distinct competitive edge needed to justify capital allocation in a crowded field. The development underscores the project’s recognition that fostering a dedicated community, while a powerful starting point, must be coupled with functional technology that addresses specific market needs to ensure long-term survival and growth.

Ripple, the company most associated with XRP, is pursuing a different but equally aggressive path to enhance the utility of the XRP Ledger. A central pillar of this strategy is the expansion of Ripple USD (RLUSD), its US dollar-backed stablecoin, including broader deployment across multiple Layer-2 networks. This move aims to deepen liquidity and foster more financial activity within the XRP ecosystem. Furthermore, Ripple has embarked on a partnership spree in 2025, a year in which it has spent approximately $4 billion on major acquisitions to strengthen the ecosystem’s infrastructure and reach.

A key recent partnership is with Doppler Finance, exploring collaboration in XRP-based yield infrastructure and real-world asset (RWA) tokenization on the XRP Ledger. RWA tokenization is widely seen as a major frontier for blockchain adoption, connecting digital tokens to physical assets like commodities or real estate. By pursuing this, Ripple is directly attempting to create the clear value flows and usage that Galaxy Digital’s leadership highlighted as critical. These concerted efforts—spanning stablecoins, strategic acquisitions, and RWA development—form a comprehensive utility push designed to prove the XRP Ledger’s relevance beyond its core community of supporters.