Mike Novogratz on XRP and ADA: Strong Utility and Community Support Provide Distinct Advantages in Their Long-Term Potential

Mike Novogratz, CEO and Founder of Galaxy Digital, recently shared his thoughts about XRP and Cardano (ADA). In a podcast discussion at the Galaxy Brain

Galaxy Digital CEO Mike Novogratz recently shared his thoughts on XRP and Cardano (ADA), highlighting their strong utility and community support as key advantages in a saturated crypto market.

During a podcast discussion at the Galaxy Brain podcast with Dan Morehead, CEO of Pantera Capital, Novogratz pointed out the challenges faced by new entrants in the crypto space. With approximately 11.6 million tokens now in the ecosystem, he noted that building a solid community is becoming increasingly difficult.

However, XRP and ADA, being among the earliest players in the cryptocurrency sector, have already established themselves as pillars of the industry, according to Novogratz. As a result, they have a loyal user base and a level of brand recognition that is nearly impossible to replicate in today’s market.

“If I came out tomorrow and said, ‘I’m starting Novo Coin,’ who cares?” said Novogratz, jokingly adding that even celebrities with massive followings now struggle to hype or market their tokens.

“It used to be that if you had a million followers on Instagram and you said, ‘I’m starting a token,’ people would buy it. And now they don’t even care if you have 10 million followers.”

According to Novogratz, the maturing crypto market now demands a strong use case or utility for any token to gain traction. XRP and ADA, in addition to their community reinforcement, each have a unique value proposition in their respective fields.

The XRP Ledger (XRPL) is seeing rising institutional adoption as many companies are using it to facilitate near-instant and cheaper cross-border payment solutions through Ripple and the Ripple USD (RLUSD) stablecoin. Meanwhile, Cardano is making great strides in providing blockchain-based identity and credentials solutions, as well as NFT, script, and smart contracts optimization tools.

Both XRP and ADA can handle large transaction volumes, especially during high network traffic conditions. Both can process over a thousand transactions per second (TPS).

Ripple CEO Brad Garlinghouse previously presented a case wherein a single ledger in XRPL peaked with 1,316 TPS. On the other hand, Cardano was able to handle 1 million TPS during a virtual gaming tournament via the Hydra Layer-2 solution, setting a new benchmark in blockchain technology.