Virtuals Protocol Revenue Crashes as AI Agent Demand Sinks
Virtuals Protocol, an AI agent platform on Solana, experienced a significant decline in daily trading revenue, dropping from $1.02 million in early January to $34,792 by late February. The VIRTUAL token fell 35.2% in price over the past week and is now trading 88.8% below its all-time high of $5.07. Factors contributing to this downturn include thin liquidity, unproven utility, oversupply of tokens, and a cooling AI sector in traditional finance. The protocol's market capitalization plummeted from approximately $1.9 billion in December 2024 to around $360 million. New agent creation dropped from 1,300 daily in November to fewer than 10 in February. Active trading wallets decreased from 181,000 to 7,642. The protocol now holds $12.1 million in cbBTC, providing a buffer against volatility and extending its operational runway.
