XRP P/S Ratio Twice that of Nvidia

The XRP token’s price-to-sales ratio is almost twice as high as that of Nvidia, a heavily traded stock. The XRP token’s ratio stands at 61.689, while Nvidia’s ratio is 37. This ratio is calculated by dividing a company’s market capitalization by its revenue or total sales in the past year. Generally, a lower ratio is considered more attractive for investment. According to Messari, Ripple’s XRP ledger generated network fees worth over $583,000 in 2023. In contrast, Nvidia reported $26.97 billion in revenue during the same year.

In the 24-hour period leading up to 10:30 am UTC, the XRP token experienced a 0.15% increase, reaching $0.6205, with a market capitalization of $34 billion. Nvidia shares (NVDA) dropped 0.49% in pre-market trading to $898.25, according to Yahoo Finance. With a market capitalization of $2.25 trillion, Nvidia is currently the world’s largest semiconductor chip manufacturer and the third-largest company overall. The company saw a significant 265% year-on-year rise in revenue due to the growing global demand for AI equipment.

Over the past year, the XRP token price has increased by 20.55%, while Nvidia’s share price has soared by over 241%, driven by the surge in global demand for semiconductor chips used in advanced AI models. The XRP price has faced challenges. Since December 2020, when the United States Securities and Exchange Commission (SEC) sued Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen, the XRP price has been under increasing pressure. The SEC alleges that Ripple raised $1.3 billion through unregistered securities offerings using XRP token sales.

The lawsuit gained further attention in July 2023 when Judge Analisa Torres ruled that XRP was not a security, but only in the context of sales on digital asset exchanges. The judge also ruled that XRP is considered a security when sold to institutional investors, meeting the Howey Test conditions. In a court filing on March 25, the SEC proposed that Ripple pay a civil penalty of $1.95 billion for its “defiance of the law” by continuing to sell XRP after receiving legal warnings. These legal challenges have hindered the XRP price.