Mike

Galaxy

Factor

<p>Mike Novogratz isn’t convinced that institutional money is what keeps XRP relevant. Instead, the Galaxy Digital CEO believes XRP’s staying power comes from something far less measurable but equally powerful, its community.&nbsp;</p>
<p><a href="https://www.youtube.com/watch?v=xYiOPz3zobk" rel="noopener noreferrer nofollow">Speaking on a rece</a><a href="https://www.youtube.com/watch?v=xYiOPz3zobk" target="_blank" rel="noopener noreferrer nofollow">nt podcast</a>, Novogratz credited the “XRP Army” for carrying the token through multiple market cycles, even as Wall Street attention remains firmly locked on Bitcoin and its ETFs.</p>
<p>In a market flooded with new tokens, narratives, and short-lived trends, Novogratz sees community belief as a survival mechanism. XRP, in his view, is proof that loyalty can still matter in crypto.</p>
<h2 class="wp-block-heading" id="h-bitcoin-etfs-now-control-the-market-s-pulse">Bitcoin ETFs Now Control the Market’s Pulse</h2>
<p>While XRP leans heavily on grassroots support, <a href="https://coinpedia.org/news/how-bitcoin-adoption-in-the-u-s-could-double-by-2025-insights-from-the-bitcoin-conference/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin is being shaped by institutional demand</a>. Novogratz explained that <a href="https://markets.coinpedia.org/" target="_blank" rel="noopener noreferrer nofollow">spot Bitcoin ETFs</a> have become a dominant force in market structure, steadily absorbing supply even during volatile periods. Despite Bitcoin’s failure to decisively reclaim the $100,000 level, ETF inflows have continued, preventing deeper downside moves.</p>
<p>He described the $100,000 zone as a psychological and technical wall built from earlier aggressive buying. That demand has since turned into overhead supply, slowing momentum as large holders sell into strength. Still, Novogratz views this phase as consolidation, not exhaustion.</p>
<h2 class="wp-block-heading" id="h-community-as-a-competitive-edge-for-xrp">Community as a Competitive Edge for XRP</h2>
<p>Novogratz compared <a href="https://coinpedia.org/price-prediction/xrp-ripple-price-prediction/" target="_blank" rel="noopener noreferrer nofollow">XRP to other long-standing crypto assets</a> that survived not through innovation or yield, but through belief. As capital becomes more selective and new projects fight for relevance, maintaining a committed user base has become harder than ever.</p>
<p>XRP’s supporters, however, have remained vocal and engaged. That persistence keeps the asset visible, even without consistent institutional inflows. In today’s market, Novogratz argues, tokens without strong communities risk fading quietly into irrelevance.</p>
<h3 class="wp-block-heading" id="h-etfs-supply-shocks-and-xrp-s-surprise-factor">ETFs, Supply Shocks, and XRP’s Surprise Factor</h3>
<p>The broader ETF narrative isn’t limited to Bitcoin. Legal expert <a href="https://x.com/Belisarius2020/status/2004395742396649477?s=20" target="_blank" rel="noopener noreferrer nofollow">Bill Morgan</a> recently noted that the anticipated “XRP ETF supply shock” has, at least partially, delivered. According to him, developments around XRP-linked investment products have genuinely surprised the market, shifting expectations around supply dynamics and long-term positioning.</p>
<h3 class="wp-block-heading" id="h-utility-still-supports-the-long-term-case">Utility Still Supports the Long-Term Case</h3>
<p>Adding to the discussion,<a href="https://x.com/Xaif_Crypto/status/2004224095286866266?s=20" target="_blank" rel="noopener noreferrer nofollow">Xaif Crypto</a> revisited a point Ripple CTO David Schwartz made back in 2017. As he noted, XRP cannot stay cheap forever without breaking its own economics. Transaction fees on the XRP Ledger are denominated in XRP, not dollars. As XRP’s price rises, fees actually become cheaper in real-world terms, while liquidity and network security improve.</p>
<p>In other words, higher prices don’t undermine XRPL’s utility; they strengthen it.</p>
<h3 class="wp-block-heading" id="h-macro-risks-can-t-be-ignored">Macro Risks Can’t Be Ignored</h3>
<p>Despite pockets of optimism, Novogratz remains cautious. He warned that a sharp downturn in U.S. equities, particularly the Nasdaq, would likely drag crypto lower. He also flagged AI-driven job displacement as a growing economic wildcard that could pressure all risk assets.</p>
<p>For now, XRP’s relevance appears less about Wall Street and more about belief, and that belief, at least so far, hasn’t broken.</p>
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1766731887828">
  <strong><strong>What risks could disrupt XRP’s current market position?</strong></strong>
  <p>Wider macroeconomic downturns, such as a sharp decline in U.S. equities or unexpected shifts in technology-driven labor markets, could pressure risk assets including XRP. Regulatory changes or reduced adoption of the XRP Ledger could also undermine its long-term utility and community-driven stability.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1766732048776">
  <strong><strong>What are the potential risks to XRP despite community strength?</strong></strong>
  <p>Broader economic downturns, such as sharp declines in U.S. equities or technology sector weakness, could pressure all crypto assets, including XRP. Regulatory developments or sudden liquidity shocks may also temporarily outweigh community-driven support.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1766732059178">
  <strong>Who benefits from XRP’s long-term utility model?</strong>
  <p>Users of the XRP Ledger benefit as rising XRP prices reduce transaction costs and enhance network security. Exchanges, developers, and businesses relying on XRPL payments may experience more efficient and cost-effective operations as the network grows.</p>
 </div>
</div>

“XRP’s Strength Isn’t Wall Street, But Its Community” Says Mike Novogratz

Table of Contents

CoinPedia News

Other articles published on Dec 26, 2025

Join our free newsletter for daily crypto updates!