Over the years, XRP has remained a significant player in the cryptocurrency market, despite shifting trends, increasing competition, and regulatory challenges. Mike Novogratz, a billionaire investor and finance expert, recently discussed why the asset has maintained relevance, pointing to a crucial factor many overlook.
While Novogratz was once skeptical about XRP’s long-term prospects, he has since revised his stance. He admitted that he was “ dead wrong ” about the digital asset, and now believes that the strength of its community, rather than just its technology or market position, has been the driving force behind its endurance.
His latest remarks came during an episode of the Galaxy Brains podcast, where he analyzed how different cryptocurrencies have performed and why some have retained value better than others.
Ethereum’s Struggles and the Role of Community
During the discussion, host Alex Thorn brought up Ethereum’s weakening position against Bitcoin. He noted that Ethereum had lost 75% of its value relative to Bitcoin since the Merge and an additional 50% since Ethereum ETFs were announced in mid-2024 . This led to the question of when Ethereum’s downward trend might reverse.
Novogratz responded by contrasting Bitcoin and Ethereum. He argued that Bitcoin’s strength lies in its straightforward identity as digital gold, a narrative that has remained consistent over time. Its value, he explained, is largely based on collective belief rather than just technological advancements.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Ethereum, on the other hand, presents a more complex case. While it functions as a decentralized trust layer, its value proposition has been challenged by the rising number of alternative blockchain platforms.
Novogratz pointed out that the constant influx of new tokens has made it harder for Ethereum and many other altcoins to build and sustain strong communities. In his view, the oversaturation of the market has diluted the attention and support that individual projects receive.
Why XRP Has Maintained Relevance
XRP and Cardano have remained relevant due to their early entry into the crypto space, allowing them to build strong, loyal communities before the market became crowded. Novogratz, who once doubted XRP’s longevity due to Ripple’s control over its supply, has now acknowledged the power of its dedicated supporters .
He emphasized that community engagement is a key factor in a cryptocurrency’s success, noting that he had underestimated XRP’s resilience and its late 2024 price surge following Trump’s election. His shift in perspective highlights the crucial role of active communities in sustaining a crypto asset’s market presence.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter , Facebook , Telegram , and Google News
