After months of freefall, Virtuals Protocol is showing signs of life. The VIRTUAL token has doubled in price over the past week, climbing above $1.11 and reentering the top 100 cryptocurrencies by market cap. The rally places it alongside Pudgy Penguins (PENGU) as one of the best-performing coins of the week.
But despite the sharp recovery, cracks beneath the surface suggest caution may be needed.
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Virtual Rides the AI Coin Rally
Virtuals’ sudden rebound isn’t happening in isolation. The broader AI crypto sector is rallying hard, with NEAR Protocol, Bittenstor (TAO), and Artificial Superintelligence Alliance (FET) all posting double-digit gains this week.
Read also: AI Crypto Coins Are Surging – Here are Top 4 to Watch
The recovery follows weeks of selling pressure triggered by the global tariffs chaos earlier this month. As sentiment around AI assets improved, Virtuals Protocol – after months of steep losses – was in a good position for a sharp bounce. Its deeply oversold condition, combined with broader sector momentum, made a 100% weekly rally possible.
Still, this surge comes after a brutal stretch that saw VIRTUAL lose nearly 90% of its value from its January high. Even now, it remains almost 80% below that peak.
$10M+ Daily DEX Volume – But Few New AI Agents
Trading activity on Virtuals’ decentralized marketplace has picked up meaningfully. Daily DEX volumes from AI agents have crossed $10 million in recent days – a big improvement compared to the near-dead figures seen earlier this month. Nearly half of that volume, however, comes from a single agent: AIXBT bot. Most other agents show only modest volume at best.
Meanwhile, growth in new AI agents remains frozen. In January, around 200 new bots were created every day. In contrast, fewer than 200 have been created in total since the start of March. Despite the token’s price recovery, user expansion is still absent.
Read also: Virtuals Protocol Down Nearly 90% Since January as AI Agent Craze Fades
Trading Revenue Rebounds, But Still Weak
Daily trading revenue for Virtuals Protocol has stabilized after dipping to new lows earlier this month. But even with the recent improvement, revenue remains a shadow of the platform’s January highs.
Without strong and sustained revenue growth, questions about Virtuals’ long-term viability are likely to persist. Traders returning to speculate on VIRTUAL doesn’t automatically translate to meaningful usage of the underlying AI agent infrastructure.
Technical Indicators Flash Warning Signs
Technical analysis also hints at trouble ahead. VIRTUAL’s Relative Strength Index (RSI) has climbed near 80 – a level typically associated with overbought conditions. Combined with the fact that the platform is still seeing little to no growth in new AI agents – and only a modest recovery in revenue – the rally could prove fragile.
While momentum from the broader AI crypto sector may continue to push VIRTUAL higher in the short term, a deeper recovery will likely require more than just price action. It will require real user growth – something that, so far, remains missing.
Read also: RSI: The Beginner’s Tool That Most People Use Wrong
