Comparing Valuation Metrics: XRP Price-To-Sale Ratio Soars, Outpacing Nvidia's Growth

The price-to-sales ratio of the XRP token is almost twice that of Nvidia, a highly traded stock in the market.

The XRP token boasts a price-to-sales ratio 61.689, whereas Nvidia stands at 37. This metric is derived by dividing a company’s market capitalization by its revenue or total sales in the preceding 12 months. A lower ratio signifies a more appealing investment opportunity.

In 2023, Messari reported that Ripple’s XRP ledger accrued more than $583,000 in-network fees. In contrast, Nvidia’s 2023 fiscal report revealed a staggering revenue of $26.97 billion.

According to data from CoinMarketCap, the XRP token experienced a 0.15% increase in the 24 hours leading up to 10:30 am UTC, reaching a value of $0.6205. This placed its market capitalization at $34 billion.

According to data from Yahoo Finance, Nvidia’s shares (NVDA) experienced a 0.49% decline in pre-market trading, reaching $898.25.

Nvidia is the world’s foremost semiconductor chip producer and ranks as the third-largest company globally, boasting a market capitalization of $2.25 trillion.

The company disclosed a staggering 265% revenue surge compared to the previous year, driven by escalating worldwide demand for artificial intelligence (AI) equipment.

XRP Legal Battles Unveiled

Last year, XRP’s price increased by 20.55%, while Nvidia’s shares shot up by 241%. Nvidia’s share price rose mainly because everyone wanted more semiconductor chips, like fancy AI gadgets, for their smart stuff.

Since December 2020, XRP’s value has faced heightened downward pressure following a lawsuit by the SEC against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen. The lawsuit alleges Ripple conducted $1.3 billion in unregistered securities offerings through XRP token sales. This legal action has significantly impacted investor sentiment and contributed to XRP’s declining price trajectory.

More folks got interested in the lawsuit back in July 2023. Why? Because Judge Analisa Torres said, XRP isn’t a security. But hold up—that’s just for when it’s sold programmatically on those digital asset exchanges.

However, the judge said XRP is like a security for big investors, following the Howey Test.

In a document filed in court on Mar 25, the SEC suggested that Ripple pay a hefty penalty of $1.95 billion. They argue that Ripple kept selling XRP even after being warned it was against the law.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.