Virtuals Protocol, a platform for creating and monetizing AI-driven virtual agents on the blockchain, has seen a dramatic drop in daily trading revenue, plunging by 96.8%. Despite expanding from Coinbase’s Ethereum layer-2 Base to Solana, the revenue has dwindled from over $1 million in early January to below $35,000 by late February. Daily earnings on the Base network have remained under $1,000 for ten consecutive days. The number of new AI agents being created has also fallen, with less than 10 agents added each day lately. Additionally, the Virtuals native token has dropped over 14% amid a broader Market downturn, signaling struggles for the platform as it continues to lose traction.
Virtuals Protocol Faces Major Revenue Decline
Virtuals Protocol, a platform focused on AI agents that create and monetize virtual beings on the blockchain, is experiencing a significant drop in daily trading revenue. Despite expanding its reach from Coinbase’s Ethereum layer-2 Base to the Solana network, the platform’s revenue has fallen by an astounding 96.8%.
Recent data from Dune Analytics shows that Virtuals reached a peak daily revenue of over $1 million on January 2, but by February 27, that figure plummeted to less than $35,000. The performance on the Base network has been especially poor, with earnings lingering below $1,000 for 10 consecutive days, a sharp decline from its daily high of $859,000 in late October 2024. Overall, Virtuals brought in just $28,492 on Base and $6,300 on Solana on February 27.
New AI Creation Rates Decline
The platform has also seen a drop in new AI agents being created, with fewer than 10 new agents added daily over the past week. This decline emphasizes the challenges Virtuals is facing even after its Promising move to the growing Solana ecosystem.
Challenges and Market Conditions
The original launch on Base generated excitement due to AI agents that could manage cryptocurrency wallets and enhance social media engagement. However, since the move to Solana, which has been marred by increased scam incidents involving failed projects, the momentum has shifted. Currently, about 170,000 unique wallets hold Virtuals agents’ tokens on Base, whereas only around 11,000 wallets are active on Solana. The overall wallet activity is dwindling, with just 7,642 wallets participating in trades on February 27.
In addition to these issues, the platform’s native token, VIRTUAL, has faced a 14% decline in value within 24 hours. This drop is part of a broader downturn in the cryptocurrency Market, where Bitcoin has lost 20% of its value over the past week due to rising global trade tensions.
The decline in interest and trading volume poses a challenging outlook for Virtuals Protocol. Once ranked 68th by Market capitalization at its Solana launch, it has now fallen to 92nd place, demonstrating the tough road ahead for this AI-driven project.
For more updates on Virtuals Protocol and the evolving landscape of AI-driven cryptocurrencies, stay tuned.
What happened to Virtuals Protocol’s revenue?
Virtuals Protocol saw a big drop in revenue, down 97%. This happened because the demand for AI agents is fading. Many businesses that used these agents are now looking for different solutions.
Why is the demand for AI agents decreasing?
The interest in AI agents has decreased due to Market saturation. Many companies may have already implemented these solutions and are not looking to expand further at this time.
How is Virtuals Protocol responding to the revenue drop?
Virtuals Protocol is exploring new opportunities and services. They are working to diversify their offerings and adapt to the changing Market needs.
What does this mean for Virtuals Protocol’s future?
The drop in revenue will likely lead to changes within the company. Virtuals Protocol may focus on developing new technology and strategies to regain Market interest and revenue.
Should customers be worried about Virtuals Protocol?
Currently, there is no immediate need for concern. Virtuals Protocol is taking steps to adjust to the Market. As they make changes, they aim to continue providing value to their customers.