XRP price-to-sales ratio double that of Nvidia

Zoltan Vardai12 hours agoXRP price-to-sales ratio double that of NvidiaThe price-to-sales ratio is used to assess the potential of an investment, with lower ratios signaling more attractive opportunities.8787 Total views20 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe XRP token’s price-to-sales ratio is nearly double that of Nvidia, one of the most traded stocks on the market. 

The XRP (XRP) token has a price-to-sale ratio of 61.689, while Nvidia has a price-to-sales ratio of 37. This ratio is calculated by dividing a company’s market capitalization by the company’s revenue or total sales over the past 12 months. The lower the ratio, the more attractive the investment.

Ripple’s XRP ledger generated over $583,000 worth of network fees in 2023, according to Messari. In comparison, Nvidia generated $26.97 billion in revenue during 2023, according to its 2023 fiscal report.

The XRP token rose 0.15% in the 24 hours up to 10:30 am UTC, to $0.6205, with a $34 billion market capitalization, according to CoinMarketCap data.

Nvidia shares were down 0.49% in pre-market trading to $898.25, according to Yahoo Finance data.

Nvidia is the world’s largest semiconductor chip manufacturer and the third-largest company in the world, with a market capitalization of $2.25 trillion.

The firm reported a 265% year-on-year increase in revenue amid rising global demand for artificial intelligence (AI) equipment.

The XRP price rose 20.55% over the past year, while Nvidia’s share price rose over 241%, mainly driven by increased global demand for semiconductor chips widely used for high-level AI models.XRP/USDT and NVDA/USD, one-year chart. Source:TradingView.

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The XRP price has been under increased pressure since December 2020, when the United States Securities and Exchange Commission (SEC) sued Ripple, its CEO Brad Garlinghouse and its co-founder Chris Larsen, alleging that the firm raised $1.3 billion in unregistered securities offerings through XRP token sales.

The lawsuit received even more interest in July 2023, when Judge Analisa Torres ruled that XRP was not a security but only in regard to programmatic sales on digital asset exchanges. 

The judge also ruled that XRP is a security when sold to institutional investors, which meets the conditions of the Howey test.

According to a March 25 court filing, the SEC proposed Ripple pay a total civil penalty of $1.95 billion, based on Ripple’s “defiance of the law” in continuing to sell XRP after legal warnings.

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