Billionaire investor Mike Novogratz recently highlighted the major factor that has kept XRP relevant over the years.
Despite his initial skepticism, Novogratz has come to recognize the resilience of the XRP Army and the important role a community plays in sustaining the value of a crypto asset.
Notably, the billionaire’s latest mention of XRP came up during an episode of the Galaxy Brains podcast, where host Alex Thorn first brought up Ethereum’s declining performance against Bitcoin.
Thorn pointed out that Ethereum had dropped 75% against Bitcoin since the Merge and 50% since the announcement of Ethereum ETFs in mid-2024. He then asked Novogratz when he believed the ETH-to-BTC ratio would reverse.
Novogratz Acknowledges Power of Community, Points to XRP
In response, the Galaxy CEO emphasized Bitcoin’s strong and simple narrative as digital gold. He noted that Bitcoin derives its value from the collective belief in its importance rather than just its technology. “The idea of people believing, that’s what gives it its value,” Novogratz stressed.
However, the billionaire contrasted this with Ethereum’s more complex proposition as a global decentralized trust layer, which has faced challenges due to growing competition and an oversupply of altcoins in the market.
“One of the reasons I think the prices of all these alts are going down is, there are too many of them,” Novogratz said, “There is an infinite amount of token supply coming up […] and there is not enough time for those narratives to build community.”
The billionaire CEO then pointed to older crypto assets like XRP and Cardano (ADA). According to him, assets like XRP started when the crypto ecosystem was not witnessing such an oversupply of multiple altcoins, and this allowed them to actually build community. This community has since sustained their relevance, according to Novogratz.
Novogratz Flips on XRP
Notably, Mike Novogratz had previously been skeptical of XRP’s lasting power, primarily because Ripple owns a significant portion of the token’s supply. However, in December 2023, he admitted he was wrong.
He conceded that he underestimated the XRP Army, the community of XRP proponents. The billionaire acknowledged that XRP has remained relevant because of its passionate user base, which has actively defended and promoted the token over the years.
He compared the XRP Army to Bitcoin’s community, recognizing that both play a major role in maintaining their respective assets’ valuations.
In February 2025, Novogratz reiterated this perspective, noting that community engagement has become an essential aspect of cryptocurrency valuations.
Novogratz also expressed surprise at XRP’s November 2024 price surge, particularly following Donald Trump’s election victory. He admitted that he never expected XRP to become one of the best-performing tokens in late 2024 but acknowledged that the strength of its community played a decisive role in its success.
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