The price-to-sales ratio serves as a gauge for evaluating investment potential, where lower ratios indicate more appealing prospects.

Comparatively, the XRP token exhibits a price-to-sales ratio nearly double that of Nvidia, a heavily traded stock in the market. Specifically, XRP's ratio stands at 61.689, while Nvidia's ratio is 37. This metric is derived by dividing a company's market capitalization by its revenue or total sales over the preceding 12 months, with a lower ratio suggesting a more attractive investment opportunity.

In 2023, Ripple's XRP ledger accrued network fees totaling over $583,000, as reported by Messari. In contrast, Nvidia recorded revenue of $26.97 billion during the same period, according to its fiscal report for 2023.

In the 24-hour period leading up to 10:30 am UTC, the XRP token experienced a modest 0.15% increase, reaching $0.6205, and held a market capitalization of $34 billion, according to CoinMarketCap. Meanwhile, Nvidia shares (NVDA) saw a 0.49% decline in pre-market trading, settling at $898.25, as per Yahoo Finance data.


XRP/USDT and NVDA/USD, 1-year chart. Source: TradingView.

Nvidia, renowned as the world's largest semiconductor chip manufacturer and the third-largest company globally, boasts a market capitalization of $2.25 trillion. Notably, the company reported a substantial 265% year-on-year revenue surge amid heightened global demand for artificial intelligence (AI) equipment.

Over the past year, the XRP price soared by 20.55%, whereas Nvidia's share price surged by over 241%, primarily fueled by escalating global demand for semiconductor chips, extensively utilized in advanced AI models.

The XRP token has faced persistent downward pressure since December 2020, following a lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen. The SEC alleged that Ripple conducted $1.3 billion in unregistered securities offerings through XRP token sales.

This legal matter garnered increased attention in July 2023 when Judge Analisa Torres ruled that XRP did not qualify as a security, albeit exclusively concerning programmatic sales on digital asset exchanges. However, the judge deemed XRP as a security when sold to institutional investors, aligning with the conditions outlined in the Howey Test.

In a court filing dated March 25, the SEC proposed that Ripple pay a total civil penalty of $1.95 billion, citing Ripple's persistent defiance of legal warnings by continuing to sell XRP.