Why XRP Hasn’t Faded: Billionaire Highlights Key To Its Survival
A billionaire investor recently gave his insights into XRP and why crypto will remain relevant in the future despite the presence of more popular digital assets.
American businessman Mike Novogratz highlighted in a podcast that XRP owes its resilience to its community, which helped the crypto sustain its value over the years.
Resilience Of XRP
Novogratz was previously skeptical of the lasting power of XRP but in recent years, the American entrepreneur backtracked from his initial skepticism on crypto.
The billionaire investor could be the latest addition to those who have changed their opinion on XRP after seeing the crypto remain strong.
In a Galaxy Brains podcast, Novogratz acknowledged the resilience of XRP, recognizing the crucial role played by its community to keep the value of the crypt asset.
The American businessman explained that XRP began when the crypto ecosystem had not witnessed an oversupply of altcoins, adding that this condition allowed the crypto to build an actual community.
He added that the crypto community that XRP successfully built is the primary reason why the digital asset was able to sustain its relevance.
Decline Of Ethereum
Novogratz mentioned the resiliency of XRP after being asked about the declining performance of Ethereum against Bitcoin.
During the podcast, Novogratz was asked for his opinion on when the ETH-to-BTC ratio would be reversed, noting that Ethereum has already dropped significantly against Bitcoin since the merge.
The American entrepreneur explained that compared to BTC, Ethereum is a more complex proposition as a global decentralized trust layer, adding that ETH has encountered challenges because of the increase in 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. There is an infinite amount of token supply coming up […] and there is not enough time for those narratives to build community,” Novogratz pointed out.
Community Engagement Crucial
Novogratz was skeptical of the lasting power of XRP but later conceded his belief, saying that he underestimated the XRP Army and the proponents of the XRP community.
The billionaire entrepreneur said that XRP has remained relevant due to the crypto’s passionate user base, who have actively defended and promoted the digital asset over the years.
He noted that one of the essential aspects of cryptocurrency valuations is community engagement, which has played a big role in the asset valuations of XRP and Bitcoin.
The American businessman admitted that he was surprised that XRP emerged as one of the best-performing tokens in late 2024, acknowledging that it was fueled by the strength of its community.
Featured image from MoneyCheck, chart from TradingView