Mike Novogratz on XRP’s Staying Power

Cryptocurrency mogul Mike Novogratz recently discussed the staying power of the Ripple-affiliated XRP token on the show “Galaxy Brain” alongside Pantera Capital founder Dan Morehead.

Novogratz noted the early start of certain cryptocurrencies like Cardano and XRP, attributing their longevity to the communities they built when competition was less intense. He emphasized that new tokens today face significant challenges in establishing narratives and building communities due to the overwhelming number of new cryptocurrencies.

According to Novogratz, launching a new coin like “Novocoin” would be particularly difficult now, as even prominent figures might struggle to create robust communities. He stated, “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.”

Interestingly, after previously criticizing both ADA and XRP, Novogratz has shown a favorable view of XRP this year, arguing people should be allowed to invest in it. He explained that XRP’s narrative keeps the community engaged.

As of now, XRP remains the third-largest cryptocurrency by market capitalization, valued at $155 billion, while Cardano (ADA) holds the ninth position with a market cap of $28.6 billion.