Virtual Protocol Revenue Drops 97% As AI Agent Demand Declines

Virtuals Protocol, a leading AI agent platform, enables users to create and trade AI-powered virtual entities on the blockchain. However, its daily trading revenue has plunged by 96.8%, even after transitioning from Coinbase’s Ethereum layer-2 Base to Solana.

Dune Analytics data shows that the protocol’s daily income on Jan. 2 was over $1 million; but, as of February 27, it had dropped to less than $35,000.

With earnings still below $1,000 for ten straight days, the Base virtual app’s revenue has been especially poor since attaining its daily peak of $859,000 on October 27, 2024. This is less than the daily peak from before.

Virtuals earned $28,492 on the Base network on February 27th, while it made $6,300 on the Solana network.

For the past ten days, users have created fewer than ten new artificial intelligence agents on the platform each day.

Virtuals gained attention for its novel artificial intelligence agents, which were able to manage their cryptocurrency wallets and even tip social media users to drive engagement. Virtuals was initially launched on Base.

On January 25th, the project announced that it would be expanding into the thriving ecosystem of Solana.

Despite this, Solana’s reputation has taken a hit in recent weeks as a result of a string of unsuccessful presidential memecoins, which have brought to light the widespread problems of scams that are present on the network.

According to Dune, there are approximately 170,000 distinct wallets on Base that are currently holding virtual agents’ tokens. This is higher than the approximately 11,000 wallets that are located on Solana.

With just 7,642 wallets trading at least one token on February 27, wallet activity on both networks has dropped.

As of the last twenty-four hours, the value of the native token of Virtual Protocol has decreased by more than fourteen per cent, as reported by CoinMarketCap.

This drop comes amid a broader decline in the cryptocurrency market, with Bitcoin losing twenty per cent of its value over the past week as a result of increased tensions in global trade.

Although the market as a whole has been experiencing a correction, Virtuals Protocol appears to be losing ground among the most prominent cryptocurrencies.

Virtuals Protocol ranked 68th in market capitalization when it first announced its move to Solana. By the time this article was published, Virtuals Protocol had already dropped to the 92nd position.