Ripple (Xrp) Outpaces Nvidia In Price-To-Sales Ratio.

The price-to-sales ratio is an important metric in evaluating an investment, and lower ratios often indicate more attractive investment opportunities.

The price-to-sales ratio of the XRP token nearly doubled that of Nvidia, one of the most popular stocks in the market.

Upon examination, this ratio for XRP was calculated at 61,689, while for Nvidia, the ratio stands at 37. The price-to-sales ratio is derived by dividing a company's market capitalization by its total revenue over the past twelve months, and the lower it is, the more attractive the investment is considered to be.

In 2023, Ripple's XRP ledger generated network fees worth $583,000, according to Messari. In comparison, as reported in Nvidia's fiscal year 2023 report, the company achieved revenue of $26.97 billion.

As per CoinMarketCap, the value of XRP increased by 0.15% in the last 24 hours to $0.6205 as of 10:30 UTC, reaching a market capitalization of $34 billion.

On the other hand, according to Yahoo Finance, Nvidia's shares (NVDA) fell by 0.49% in pre-market trading to $898.25. Nvidia is one of the world's largest semiconductor chip manufacturers, with a market capitalization of $2.25 trillion, making it the third-largest company globally.

The company's revenues have shown a 265% increase compared to the previous year, particularly due to the rising global demand for artificial intelligence (AI) equipment.

Over the past year, the price of XRP has increased by 20.55%, while Nvidia's share price has seen an increase of more than 241%, especially due to the rising global demand for semiconductor chips needed for artificial intelligence models.

The issue of why XRP has not surged is linked to the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020. The SEC alleged that Ripple raised $1.3 billion through unregistered securities offerings via sales of the XRP token.

This lawsuit has put pressure on the price of XRP, creating a negative impact. Throughout the litigation process, the possibility of the SEC holding Ripple legally accountable and the potential impact of this on the current and future use of XRP has shaken the confidence of investors and the market.

In July 2023, the course of the lawsuit changed when Judge Analisa Torres decided that XRP is not a security but rather related only to programmatic sales on digital asset exchanges. However, the Judge also ruled that XRP meets the criteria of a security under the Howey Test when sold to institutional investors.

According to a court filing dated March 25, recently, the SEC proposed that Ripple pay a total of $1.95 billion in civil penalties based on its continuation to sell XRP after legal warnings, as a "challenge to the laws." These developments have created uncertainty about the future of XRP and led to hesitancy among investors in the market. Therefore, the pressure on the price of XRP continues.

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