VIRTUAL’s revenue drops 99% – Will recovery be elusive?
- Virtual protocol has fallen 99% in revenue, activity, and DEX trading volumes.
- The VIRTUAL token has dumped over 90% on price charts, too.
Virtual [VIRTUAL] protocol revenue declined nearly 100% as demand for AI agents fizzled out. At its peak in December 2024 and early January, the AI agent launchpad raked over $500K in daily revenues.
Now, the protocol’s daily revenue has shrunk to $500 as of April — A 99.9% plunge.
Source: Blockworks
Virtual network activity plunges
The 100% drop in revenue was due to a sharp decline in network activity in the Virtual ecosystem.
In fact, only one new agent was created in the past week, noted one analyst. At its peak, the platform churned out over 1000 AI agents per day, marking another 100% crash on the network activity front.
In addition, market sentiment soured amid ongoing macro uncertainty, denting traders’ interest in the AI agent segment. According to Dune Analytics, daily DEX volume by agents dropped from $267 million in December to $2.4 million.
Source: Dune Analytics
That’s another 99% decline in DEX volume and traders’ interest in AI agents from the Virtual ecosystem. By extension, the muted demand affected VIRTUAL’s value as the ecosystem’s native token.
The AI agent cool-off exposed the token to a 91% price decline from $5 to $0.45. As a result, its market cap contracted from $5 billion to 2024 U.S. election levels of $292 million.
Source: VIRTUAL/USDT, TradingView
According to IntoTheBlock, 75% of investors (372 million VIRTUAL) were at a loss, and only 21% of users were in profit. This could force some to wait for a relief rally before dumping their tokens. If so, it could ease further downside risk.
However, any relief bounce could tempt investors to dump when they break even.
As a result, traders could keep an eye on the key overhead hurdle of $0.6-$1, where 153 million VIRTUAL were bought, and could trigger selling pressure from investors at break-even levels.
Source: IntoTheBlock