The XRP token boasts a price-to-sales ratio that is almost twice as high as that of Nvidia, a heavily traded stock in the market. With a ratio of 61.689, XRP surpasses Nvidia’s ratio of 37. This ratio is calculated by dividing a company’s market capitalization by its revenue or total sales over the past year. A lower ratio indicates a more attractive investment opportunity.
According to Messari, Ripple’s XRP ledger generated network fees worth over $583,000 in 2023. In comparison, Nvidia reported a revenue of $26.97 billion in the same year, according to its fiscal report.
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, as reported by CoinMarketCap. On the other hand, Nvidia shares saw a 0.49% decrease in pre-market trading, dipping to $898.25, according to Yahoo Finance data.
Nvidia, known as the world’s largest semiconductor chip manufacturer, holds the third-largest market capitalization globally, amounting to $2.25 trillion. The company reported a remarkable 265% year-on-year increase in revenue, driven by the growing global demand for artificial intelligence (AI) equipment.
Over the past year, the price of XRP has risen by 20.55%, while Nvidia’s share price has surged by over 241%. This surge can be attributed to the heightened global demand for semiconductor chips, which are widely used for advanced AI models.
The XRP/USDT and NVDA/USD charts for the past year depict these price movements. (See image below)
Despite these positive developments, the XRP price has faced significant pressure since December 2020. During this time, 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 the company raised $1.3 billion through unregistered securities offerings via XRP token sales.
The lawsuit gained further attention in July 2023 when Judge Analisa Torres ruled that XRP was not classified as a security, but only in terms of programmatic sales on digital asset exchanges. However, the judge also stated that XRP is considered a security when sold to institutional investors, meeting the conditions of the Howey test.
In a court filing on March 25, the SEC proposed that Ripple pay a total civil penalty of $1.95 billion due to their “defiance of the law” by continuing to sell XRP after receiving legal warnings.
The XRPL blockchain has recently integrated with cross-chain decentralized finance (DeFi) systems, further expanding its capabilities and potential impact.