Mike Novogratz: XRP's Community Power Surprises Me

Galaxy Digital CEO Mike Novogratz recently shared his revised perspective on Ripple and XRP, acknowledging that he had previously underestimated the potential of the digital asset and its community. In a video montage shared by BankXRP, a prominent crypto influencer, Novogratz admitted that he had not anticipated the strength and dedication of the XRP community, which has driven the asset's remarkable performance.

Novogratz expressed surprise at how XRP defied market expectations, surging to a multi-year high of $2.86 in December 2024 and reaching another multi-year high of $3.39 in January 2025. This shift in his perspective mirrors a similar change from veteran trader Peter Brandt, who previously criticized XRP.

During the conversation, Novogratz reflected on his earlier skepticism regarding XRP's long-term prospects, particularly his concerns about Ripple's substantial ownership stake in the asset. However, he now recognizes that the token's sustained success is largely driven by the XRP army—its passionate and engaged community. This is not the first time Novogratz has revised his stance on XRP; in December 2023, he started acknowledging XRP's resilience and Ripple's increasing influence in the financial sector. However, he conspicuously omitted XRP when discussing potential ETFs in mid-2024.

Novogratz's latest comments emphasize the fundamental role of community support in shaping a cryptocurrency's value, finally giving the asset the credit it deserves. He referenced Tesla as an example, noting that the company's high market valuation is partially due to its dedicated base of supporters who believe in its long-term mission. However, he also highlighted the role of utility, expecting fluctuations like the token's recent decline to continue until the digital asset can achieve proper utility.

In addition to praising the community, Novogratz recognized the increasing prominence of Ripple as a financial institution. He highlighted Ripple CEO Brad Garlinghouse's leadership in driving the company's growth and expanding its role in global settlements. Novogratz credits Ripple's growth into a leading payments company for solidifying XRP's position in the market, acknowledging that Ripple has established itself as a serious institution in the financial sector despite his initial skepticism.