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Galaxy Digital CEO Mike Novogratz said that tokens like XRP and Cardano (ADA), which rely heavily on community loyalty, must prove real-world utility or risk lagging stronger-performing rivals in future market cycles.

He made the comments in a recent discussion with Alex Thorn, Head of Firmwide Research at Galaxy Digital, about 2026 outlooks for Bitcoin, crypto, tokenization, real-world assets, and artificial intelligence.

Novogratz believes that the crypto market is moving away from tokens built on hype to those with real business fundamentals. With more choices available each cycle, keeping a community engaged is harder. Tokens that survive only because of loyal communities may lose out to those with profits and measurable value.

He said that the likely winners are business-driven tokens, blockchains that truly become platforms people build on, and Bitcoin.

“Because the moment you’re not money, Bitcoin is money, then you’re just a business. The valuations are a lot lower,” he noted.

“Can Ripple hold it together? Can Cardano hold it together?” Novogratz asked during the conversation. “Who became money and who were businesses that are going to now be valued at, well, how much do you make me?”

“Charles Hoskinson, bless his soul, he’s kept the Cardano community with a blockchain that people don’t really use a lot,” Novogratz said. “He’s had a strong community just like XRP. Can you keep it together when there are more and more options?”

Novogratz pointed to Hyperliquid as an example of a token with clear value. The exchange burns 98% of its profits by buying back and destroying tokens, creating what he described as an equity-like investment.

“I think that’s the future of tokens,” he said. “You’re going to see good tokens trade well, just like good real-world assets.”

The Galaxy CEO predicted a one-to-three-year transformation period for the crypto industry, with crypto wallets and exchanges evolving into neobanks offering stablecoins, tokenized equities, and money market products.

Evernorth Holdings, an XRP treasury entity backed by Ripple executives, is sitting on paper losses of more than $220 million following the coin’s recent downturn.

According to data tracked by CryptoQuant, Evernorth’s XRP position totals approximately 389 million tokens, purchased for about $947 million.

Based on the current XRP price of $1.86, the value of that stake has declined to $724 million, resulting in a sizable unrealized deficit for the firm.

XRP, Ripple’s native crypto asset, has dropped around 16% over the past 30 days amid a market-wide correction that pushed Bitcoin below $88,000.

Prices have weakened even as US-listed XRP ETFs have posted consistent inflows since their debut, collectively taking in over $1 billion, per SoSoValue.

BitMEX co-founder Arthur Hayes sold 682 Ethereum worth roughly $2 million on Tuesday, according to data tracked by Lookonchain.

Arthur Hayes(@CryptoHayes) has just deposited another 682 $ETH($2M) into #Binance to sell and rotate into high-quality DeFi tokens.

In the past week, he has sold a total of 1,871 $ETH($5.53M), and bought 1.22M $ENA($257.5K), 137,117 $PENDLE($259K), and 132,730 $ETHFI($93K).… pic.twitter.com/2mddOY3H1t

— Lookonchain (@lookonchain) December 24, 2025

Hayes also increased exposure to decentralized finance tokens, buying Ethena (ENA), Pendle (PENDLE), and Ether.fi (ETHFI), with total purchases valued at about $609,000.

The latest trades build on activity from last weekend, when Hayes exchanged 680 ETH for 1.2 million ENA tokens. Hayes has said he is reducing Ethereum exposure in favor of select DeFi assets that he believes could benefit more directly from improved liquidity conditions.

The analyst had accumulated ENA earlier in 2025 before selling a portion of his holdings during periods of market weakness, resulting in realized losses on those positions.

The Federal Reserve is expected to deliver limited rate cuts in 2026 unless there is a sharp deterioration in the labor market, according to BlackRock senior strategists Amanda Lynam and Dominique Bly.

Their outlook reflects recent US labor market data, which point to modest softening but no sharp downturn.

Although the unemployment rate rose to 4.6% in November, the highest since 2021, analysts noted that part of the increase was driven by higher labor force participation and government job losses rather than a fundamental weakening in labor conditions.

From a policy standpoint, the Fed continues to view labor risks as balanced, according to BlackRock’s strategists. Recent data echo some downside concerns flagged by Chair Jerome Powell, but do not signal a major breakdown in employment conditions, they stated.

With 175 basis points of cuts already implemented since September 2024 and policy rates approaching neutral, BlackRock sees limited room for aggressive easing in 2026. Further cuts would depend on a sharp labor market decline, which they do not expect.

US Bitcoin and Ethereum ETF net flows have remained negative since early November, according to blockchain analytics firm Glassnode. The 30-day simple moving average for both asset classes turned negative in early November and has stayed below zero.

Glassnode attributed the trend to “a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction across the crypto market.”

The firm tracks 11 Bitcoin ETFs, including products from BlackRock, Fidelity, Grayscale, Ark/21 Shares, Bitwise, VanEck, Valkyrie, Invesco/Galaxy, Franklin Templeton, and WisdomTree.

Its Ethereum coverage includes nine ETFs from BlackRock, Grayscale, Fidelity, 21 Shares, Bitwise, VanEck, Invesco/Galaxy, and Franklin Templeton.

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Silver rose above the $71 mark on Tuesday midday, setting a new all-time high as it extends a powerful rally that has made it one of 2025’s top-performing assets. The metal is now up roughly 138% year-to-date, outperforming gold’s 70% gain and matching the returns of platinum.

With a market capitalization approaching $4 trillion, silver has become the fourth-largest asset globally, according to CompaniesMarketCap data. Its valuation now sits just $30 billion below Apple, while Nvidia remains the second largest asset at roughly $4.5 trillion.

The surge in precious metals comes as investors increasingly turn to them as a hedge against rising risks in equities and digital assets. Gold climbed to a record high above $4,500 on Monday.

Analysts point to expectations of looser US monetary policy, a weaker dollar, and ongoing geopolitical tensions as key drivers of the move. Bullion prices have set multiple records this year, supported by US rate cuts and declining real yields. Goldman Sachs has forecast gold reaching $4,900 by December 2026.

The US dollar is down nearly 10% in 2025, on track for its worst annual performance in eight years. Investors widely expect further weakness into 2026 as global growth improves and the Federal Reserve continues easing policy.

Crypto investment products shed $952 million last week as delays to the market structure bill and concerns over whale selling triggered a risk-off shift among investors, according to CoinShares.

The pullback snapped a four-week inflow streak, largely driven by heavy outflows from Ethereum and Bitcoin funds. About $555 million exited Ethereum products, while Bitcoin funds saw $460 million in outflows.

In contrast, XRP and Solana investment products continued to draw in fresh capital. Investors added approximately $63 million to XRP funds and nearly $49 million to Solana products.

Despite last week’s weakness, Ethereum is still outperforming last year on a year-to-date basis. Funds linked to the second-largest crypto have attracted $12.7 billion so far this year, compared with $5.3 billion over the same period last year.

Bitcoin has yet to match last year’s momentum, with funds tied to the leading crypto asset drawing $27.2 billion in inflows year-to-date, versus $41.6 billion in 2024.

As of December 20, digital asset investment products had around $46.7 billion in total assets under management, well below the $48.7 billion recorded in 2024.