TL;DR
- Virtuals Protocol has suffered a 96.8% drop in its daily revenue, going from over $1 million to less than $35,000 in two months.
- The platform, which expanded to Solana, is facing difficulties due to the poor reputation of the blockchain and the low creation of new AI agents.
- The native token VIRTUAL has dropped 9.2% in 24 hours and 21% in the past week, reflecting the widespread decline in the crypto market.
Virtuals Protocol, the platform based on artificial intelligence (AI) agents, has suffered a drastic drop in its economic performance, showing a 96.8% decrease in its daily revenue.
At its peak popularity on January 2, Virtuals’ revenue exceeded one million dollars. However, by the end of February, this figure had dropped to less than $35,000. The low demand for AI agents on the platform is reflected in the sparse creation of new agents, with fewer than 10 new agents being created per day over the past 10 days, a complete turnaround from the days of higher activity.
What Caused the Fall of Virtuals Protocol?
Initially launched on the Ethereum Layer 2, it expanded to Solana at the end of January, aiming to capitalize on the growing popularity of that blockchain. However, Solana’s reputation has recently been affected due to issues related to scams and the failure of several tokens on its network. This situation has negatively impacted Virtuals’ performance on Solana, which currently has only around 11,000 unique wallets compared to the 170,000 registered on Ethereum’s Base network.
The poor performance of the platform directly impacted the performance of its native token, VIRTUAL, which has fallen by more than 9.2% in the last 24 hours and is currently priced at $1.02 per unit. The decline aligns with the overall performance of the crypto market. On a weekly level, the drop is much worse, reaching 21%. Additionally, wallet activity on both networks, Base and Solana, has significantly decreased, with only 7,642 wallets making transactions in the last 24 hours.
Although Virtuals Protocol was initially presented as an innovative platform of AI agents capable of managing cryptocurrencies and generating interactions on social media, it seems to have lost momentum amid the widespread decline in the crypto market and the saturation of similar projects. In its attempt to expand its ecosystem, the protocol has faced some difficulties in maintaining the attention of users and developers, raising doubts about its future
