Virtuals Protocol (VIRTUAL), one of 2024’s top-performing assets, is experiencing renewed selling pressure. After reaching new all-time highs in early January 2025, the token has dropped over 70% from those levels. While a rebound in May briefly lifted VIRTUAL above $2, the broader trend since then has been downward.
Over the past month, VIRTUAL has lost approximately 42% of its value. The decline includes a 14% drop in the past seven days alone. Despite temporary support during early May – partly linked to renewed interest following the Genesis program – recent price action has largely been negative. Today, the token continues to show a slow downward trajectory.
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Falling Metrics Across Multiple Areas
On-chain activity has shown a decline during June. The number of active wallets, while still higher than in April and early May, has been gradually decreasing throughout the month. Daily trading revenue and decentralized exchange (DEX) volume have also fallen from their post-Genesis highs.
Compared to the lows of March and April, trading metrics remain stronger overall. However, the month-on-month shift is negative. Both user engagement and liquidity indicators appear to be weakening.
Decline in AI Agent Activity
The AI Agent Launchpad – a feature of the Virtuals Protocol that gained attention in late 2024 – has seen a sharp reduction in use. New agent launches have slowed considerably. The overall market cap of AI agents remains dominated by a small number of projects.
Three agents – AIXBT, TIBBIR, and GAME – now account for nearly half of the AI agent market cap. The top ten agents control over 75%. The current data suggests that agent creation has become increasingly concentrated, with limited new entries gaining traction.
Genesis Platform Sees Mixed Participation
The Genesis platform, launched in April as a new participation-based distribution system for AI agents, showed strong uptake initially. However, between June 19 and June 23, the amount of VIRTUAL committed to the platform dropped significantly.
A partial recovery has been observed over the past few days. While the cause of the temporary decline is uncertain, external factors such as geopolitical developments – including recent tensions in the Middle East – may have contributed.
Staking metrics have also shifted. Both the daily number of newly staked tokens and the total amount staked have declined in recent weeks. This trend indicates reduced user commitment to long-term lockup strategies.
Bigger Picture
The recent downturn follows a period of strong performance. VIRTUAL was one of the highest-returning tokens of 2024, offering five-digit percentage gains over the year. April marked a local bottom below $0.50, followed by a recovery fueled by the Genesis rollout.
Despite the current drawdown, activity levels remain above the lowest points seen in Q2 2025. However, multiple indicators – including wallet activity, DEX volume, trading revenue, staking, and Genesis participation – are pointing lower for June compared to May.
Whether these trends persist or stabilize in July may depend on updates from the protocol’s development team, renewed engagement from users, or changes in market conditions.
