The XRP token’s price-to-sales ratio is nearly double that of Nvidia, one of the most traded stocks on the market.
XRP’s price-to-sales ratio stands at 61.689, while Nvidia’s is at 37. This ratio is calculated by dividing a company’s market capitalization by its revenue or total sales over the past 12 months. A lower ratio is generally considered more attractive for investment.
Ripple’s XRP ledger generated over $583,000 worth of network fees in 2023, as reported by Messari. In contrast, Nvidia recorded $26.97 billion in revenue during the same period, according to its 2023 fiscal report.
XRP token rose 0.15% in the 24 hours up to 10:30 am UTC, reaching $0.6205, with a $34 billion market capitalization, according to CoinMarketCap data.
Nvidia shares experienced a 0.49% decline in pre-market trading to $898.25, as per Yahoo Finance data.
Nvidia is the world’s largest semiconductor chip manufacturer and the third-largest company globally, boasting a market capitalization of $2.25 trillion. The firm reported a remarkable 265% year-on-year increase in revenue due to surging global demand for artificial intelligence (AI) equipment.
Price Performance
Over the past year, the XRP price rose by 20.55%, while Nvidia’s share price surged over 241%, primarily driven by heightened global demand for semiconductor chips crucial for advanced AI models.
The XRP price has faced significant pressure since December 2020 when the United States Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen. The lawsuit alleged that Ripple conducted $1.3 billion in unregistered securities offerings through XRP token sales.
In July 2023, Judge Analisa Torres ruled that XRP was not a security, but only in relation to programmatic sales on digital asset exchanges. However, the judge deemed XRP a security when sold to institutional investors, aligning with the conditions of the Howey test.
Proposed Civil Penalty
A March 25 court filing revealed that the SEC proposed Ripple pay a total civil penalty of $1.95 billion, citing Ripple’s alleged “defiance of the law” by continuing to sell XRP after receiving legal warnings.
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