Cryptocurrency Mogul Mike Novogratz Weighs in on the Staying Power of XRP Token

Cryptocurrency mogul Mike Novogratz has weighed in on the staying power of the Ripple-affiliated XRP token during a recent appearance on "Galaxy Brain"

Cryptocurrency mogul Mike Novogratz has shared his thoughts on the staying power of XRP, the token affiliated with Ripple Labs, during a recent appearance on "Galaxy Brain" alongside Pantera Capital founder Dan Morehead.

According to Novogratz, the early entry of cryptocurrencies like XRP into the market, when there were fewer options available, has played a significant role in their enduring presence among the top coins. These early tokens managed to establish strong communities around their projects.

"Why is Cardano still one of the bigger coins? Or XRP? Because they got started early when there were not as many choices and they built communities," Novogratz said.

However, the landscape has shifted dramatically since then, with an "infinite" number of new cryptocurrencies being launched continuously. This leaves little time for emerging tokens to create compelling narratives and build engaged communities.

The 60-year-old billionaire highlighted the difficulty of launching something like "Novocoin" in today's market, emphasizing the challenges involved in building a community from scratch. According to Novogratz, even some highly famous individuals might struggle to create resilient communities around their projects.

"I think that it's going to be harder for new projects to gain sustainability unless there's utility. Right, now there's very little utility in the valuations, " Novogratz added.

Despite being critical of both ADA and XRP in the past, Novogratz spoke rather favorably of the latter earlier this year, arguing that people should be allowed to buy the Ripple-affiliated token if they want to. He claimed that the cryptocurrency was being propelled by its narrative that keeps the community engaged.

After its stunning comeback in the fourth quarter of 2024, XRP remains the third-biggest cryptocurrency by market capitalization. It is currently valued at $155 billion.

Meanwhile, Cardano (ADA) remains in ninth place with a market cap of $28.6 billion.