Virtuals Protocol Revenue Plummets 96.8% Amidst AI Agent Creation Slump

Virtuals Protocol, a pioneering platform enabling the creation and monetization of AI-driven virtual entities on the blockchain, has witnessed a dramatic decline in its daily trading revenue. Despite expanding from Coinbase’s Ethereum layer-2 Base to Solana, the protocol's revenue has plummeted by 96.8%.

According to data from Dune Analytics, Virtuals Protocol recorded its highest daily revenue of over $1 million on Jan. 2. However, as of Feb. 27, that figure had dropped to less than $35,000. Revenue from the Base virtual app has been particularly weak, with earnings remaining below $1,000 for 10 consecutive days, declining from its daily peak of $859,000 on Oct. 27, 2024. In total, Virtuals generated $28,492 on the Base network and $6,300 on Solana on Feb. 27.

The number of new AI agents created on the platform has remained below 10 per day for the past 10 days, with less than 10 agents created since Feb. 18. This decline in agent creation has contributed to the overall decrease in revenue.

Originally launched on Base, Virtuals gained attention for its novel AI agents capable of managing their own cryptocurrency wallets and even tipping social media users to drive engagement. However, the project's expansion into the Solana ecosystem has not yielded the expected results. Solana's reputation has suffered in recent weeks following a wave of failed presidential memecoins, which have underscored the rampant scamming issues on the network.

There are currently about 170,000 unique wallets holding Virtuals agents' tokens on Base, compared to roughly 11,000 on Solana. Wallet activity has significantly declined across both networks, as only 7,642 wallets traded at least one token on Feb. 27.

Virtual Protocol's native token has fallen more than 14% in the past 24 hours, according to CoinMarketCap data. The drop comes amid a broader crypto market downturn, with Bitcoin losing 20% of its value over the past week due to heightened global trade tensions. Despite the wider market correction, Virtuals Protocol appears to be losing traction among