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The XRP&nbsp;token’s price-to-sales ratio is nearly double that of Nvidia, one of the most traded stocks on the market.&nbsp;
The XRP (<a href="https://cointelegraph.com/xrp-price-index">XRP</a>)&nbsp;token has a price-to-sale ratio of 61.689, while Nvidia has a price-to-sales ratio of 37. This ratio is calculated by dividing a company’s market capitalization by the company’s revenue or total sales over the past 12 months. The lower the ratio, the more attractive the investment.
Ripple’s XRP ledger generated over $583,000 worth of network fees in 2023, according to Messari. In comparison, Nvidia generated $26.97 billion in revenue during 2023, <a href="https://nvidianews.nvidia.com/_gallery/download_pdf/63f68ec2ed6ae572b3034309/" target="_blank" rel="noopener nofollow">according</a> to its 2023 fiscal report.
The XRP token rose 0.15% in the 24 hours up to 10:30 am UTC, to $0.6205, with a $34 billion market capitalization, <a href="https://coinmarketcap.com/" target="_blank" rel="noopener nofollow">according</a> to CoinMarketCap data.
Nvidia shares were down 0.49% in pre-market trading to $898.25, <a href="https://finance.yahoo.com/quote/NVDA/" target="_blank" rel="noopener nofollow">according</a> to Yahoo Finance data.
Nvidia is the world’s largest semiconductor chip manufacturer and the third-largest company in the world, with a market capitalization of $2.25 trillion. 
The <a href="https://cointelegraph.com/news/nvidia-q4-results-earnings-revenue-up-265-ai-boom-tesla">firm reported a 265%</a> year-on-year increase in revenue amid rising global demand for artificial intelligence (AI) equipment.
The XRP price rose 20.55% over the past year, while Nvidia’s share price rose over 241%, mainly driven by increased global demand for semiconductor chips widely used for high-level AI models. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/67e30948-5726-4c80-ac3d-0f3e96b7d290.png" alt="" title="">
 <figcaption style="text-align: center;">
 XRP/USDT and NVDA/USD, one-year chart. Source: TradingView.
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/nvidia-ceo-simple-solution-artificial-intelligence-ai-hallucination-upend-crypto">Nvidia CEO’s simple solution to AI hallucination could upend crypto — but only if it works</a>
<h2 data-ct-non-breakable="true" id="what-is-holding-the-xrp-price-back">What is holding the XRP price back?</h2>
The XRP price has been under increased pressure since December 2020, when the United States Securities and Exchange Commission (SEC) sued Ripple, its CEO Brad Garlinghouse and its co-founder Chris Larsen, alleging that the firm raised $1.3 billion in unregistered securities offerings through XRP token sales.
The lawsuit received even more interest in July 2023, when Judge Analisa Torres ruled that <a href="https://cointelegraph.com/news/ripple-wins-case-against-sec-as-judge-rules-xrp-is-not-a-security">XRP was not a security</a>&nbsp;but only in regard to programmatic sales on digital asset exchanges.&nbsp;
The judge also ruled that XRP is a security when sold to institutional investors, which meets the conditions of the Howey test.
According to a March 25 court filing, the <a href="https://cointelegraph.com/news/ripple-pay-significant-civil-penalty-sec">SEC proposed Ripple pay</a> a total civil penalty of $1.95 billion, based on Ripple’s “defiance of the law” in continuing to sell XRP after legal warnings. 
Related: <a href="https://cointelegraph.com/news/ripple-xrpl-defi-integration-amm">XRPL blockchain plugs into cross-chain DeFi</a>

XRP price-to-sales ratio double that of Nvidia

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Cointelegraph

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