Virtuals Protocol hit by token drain, revenue drop, and user exodus

Virtuals Protocol token continued its strong downward trend on Sunday, June 22, as its ecosystem woes accelerated.

Virtuals Protocol (VIRTUAL) price tumbled to a low of $1.35, its lowest level since May 8. It has dropped by more than 46% from its highest point on May 27 this year. 

Virtuals Protocol’s sharp decline reflects a broader unraveling of its once-promising ecosystem, as falling demand for AI agent tokens, slumping revenue, and dwindling user engagement weigh heavily on investor sentiment.

With daily active addresses and smart money holdings plummeting, and exchange balances rising, the data points to growing sell pressure and fading confidence in the platform’s utility. The collapse in VIRTUAL’s price and sub-tokens underscores the mounting challenges facing speculative AI-driven crypto projects in a cooling market.

Ecosystem challenges continue

Data shows that the prices of most of its AI agent tokens have been in a strong downtrend. For example, GAME by Virtuals (GAME) token plunged by over 24% in the last 24 hours.

Similarly, Ribbita by Virtuals, VaderAI, and aixbt (AIXBT) tokens plunged by over 30% in the last seven days.

More data shows that Virtuals Protocol is no longer making as much money as it made earlier this year. It made over $3.5 million in January as AI agent generation and demand jumped. It has made less than $200,000 this month, a big drop from last month’s $770,000. 

Further data shows that the number of daily active addresses has dropped to below 12,000, down from the year-to-date high of 30,000.

VIRTUAL’s price has plunged as exchange balances have jumped by 22% in the last 30 days to over 33.67 million. Whale holdings have dropped by 5% to 1 million, while smart money holdings fell by 46% to 10.4 million. 

VIRTUAL price technical analysis

The 12-hour chart shows that the VIRTUAL price peaked at $2.5850 in May as cryptocurrencies rallied. It has formed a head-and-shoulders pattern, a popular reversal pattern. This pattern comprises a head at $2.5850 and the shoulders at around $2.20. It has moved below the neckline at $1.6125. 

Virtuals Protocol has moved below the 50% Fibonacci Retracement level at 1.50. It also moved below the 50-period and 100-period moving averages, while the Relative Strength Index and the MACD have all pointed downwards. 

The token will likely continue falling as sellers target the psychological point at $1, down by 28% below the current level. A move above the resistance at $1.6125 will invalidate the bearish outlook.