Here's an uncomfortable question for XRP enthusiasts: Can 16,703 active addresses really justify a $115 billion market capitalization? Galaxy Digital (GLXY) CEO Mike Novogratz doesn't think so, and he's not being shy about it.
During a Friday conversation with Galaxy's Head of Research Alex Thorn, Novogratz threw down a challenge to both XRP (XRP) and Cardano (ADA). As the cryptocurrency market evolves from hype-driven narratives toward fundamentals-focused valuation, he wants to see genuine utility beyond passionate communities.
"Can Ripple hold it together? Can Cardano hold it together?" Novogratz asked, highlighting that while both tokens boast resilient fan bases, their on-chain activity tells a different story.
He wasn't exactly gentle with Cardano founder Charles Hoskinson either. "Charles Hoskinson, bless his soul, he's kept the Cardano community with a blockchain that people don't really use a lot," Novogratz said. "Can you keep it together when there are more and more options?" he added.
The Bull Camp Fires Back
Not everyone agrees with Novogratz's skepticism. DAG Family Office CEO Jake Claver claimed on X that "major institutions are stacking up XRP behind the scenes while keeping the public in the dark. The current price is merely a shadow of what's coming."
Claver argues that XRP will transform into "the foundation of international finance" and offers "nothing in crypto space offers this level of certainty and potential for massive returns."
Back in December, Claver said he was "99.99999% confident" XRP would make a major move before year-end. He's doubled down on his belief that the token could eventually reach triple-digit prices, citing ETF expansion, shifting global liquidity, regulatory clarity, and macroeconomic disruptions as catalysts.
When The Numbers Tell A Different Story
The on-chain metrics back up Novogratz's concerns in stark fashion. According to CryptoQuant data, XRP had just 16,703 active addresses. Cardano's active addresses tallied slightly over 19,000.
Compare that to Solana (SOL), which typically sees millions of active addresses driven by DeFi applications, meme tokens, and various apps. Yet the market cap rankings flip the script entirely.
Solana, despite its dramatically higher network usage, sits seventh globally with a market value near $72 billion. XRP, by contrast, ranks fifth with a market capitalization around $115 billion. Meanwhile, Cardano's ADA, with similarly muted activity, trades near $13-14 billion and holds roughly the 12th spot.
It's a valuation puzzle that's hard to ignore. How does a network with minimal daily activity command nearly twice the market cap of a blockchain processing millions of transactions?
The Shift Toward Real Business Metrics
Novogratz's broader argument is that the crypto market is growing up. Tokens that aren't "money" like Bitcoin (BTC) will increasingly be valued like traditional businesses based on revenue, usage, and measurable value creation.
He pointed to emerging examples like Hyperliquid (HYPE), a decentralized perpetuals exchange that generates real revenue and burns most profits to buy back its token. That creates equity-like economics that traditional investors can actually analyze and understand.
The implication is clear: Community loyalty and social media hype might have carried tokens through crypto's earlier chapters, but the next phase demands actual business fundamentals. For XRP and Cardano, that means either demonstrating real-world adoption and usage or watching their valuations eventually realign with their on-chain activity.
Whether the bulls are right about secret institutional accumulation or Novogratz is correct about an inevitable reckoning, the disconnect between XRP's user base and market cap remains one of crypto's most fascinating valuation mysteries.