Billionaire Investor Mike Novogratz Highlights the Resilience of XRP and Explains Why Crypto Will Remain Relevant Despite the Presence of More Popular Digital Assets

American businessman Mike Novogratz highlighted in a podcast that XRP owes its resilience to its community, which helped the crypto sustain its value

Billionaire investor Mike Novogratz recently shared his insights on XRP and the broader crypto landscape, highlighting the enduring strength of XRP and the role of community in sustaining its value.

Despite skepticism in the past, Novogratz has come to appreciate the resilience of XRP, crediting its enduring presence to the passionate community that has supported the crypto over the years.

In a recent appearance on the Galaxy Brains podcast, Novogratz highlighted the surprising resilience of XRP, underscoring the critical role of its community in maintaining the crypto's value.

According to Novogratz, XRP's journey began at a time when the crypto ecosystem was not yet saturated with an overabundance of altcoins, a condition that enabled XRP to garner genuine community support.

This community engagement, he posited, is the primary factor behind XRP's sustained relevance in the crypto market.

Novogratz's commentary on XRP's enduring strength emerged in response to queries regarding the diminishing performance of Ethereum relative to Bitcoin.

During the podcast, Novogratz was prompted to share his insights on the timing of a potential ETH/BTC ratio reversal, given that Ethereum's performance against BTC has notably declined since The Merge.

According to the billionaire investor, Ethereum's role as a global decentralized trust layer at scale, compared to BTC, makes it a more complex proposition.

He attributed ETH's challenges to increased competition and an oversupply of altcoins in the market.

“One of the reasons I think the prices of all these alts are going down is, there are too many of them. There is an infinite amount of token supply coming up […] and there is not enough time for those narratives to build community,” Novogratz remarked.

Billionaire investor Mike Novogratatz is known for his shifting stance on various cryptocurrencies.

After initially expressing skepticism about XRP's lasting power, Novogratz has gradually conceded his belief in the crypto, admitting that he underestimated the strength of the XRP Army.

He now credits XRP's resilience to its passionate user base, who have actively defended and promoted the digital asset over the years.

According to Novogratz, community engagement plays a crucial role in determining the asset valuations of cryptocurrencies, with both Bitcoin and XRP being prime examples.

He expressed surprise at XRP emerging as one of the best-performing tokens in late 2024, a phenomenon that he largely attributes to the strength of the XRP community.