Virtuals Protocol, an AI agent platform, saw a stunning drop in daily revenue. Revenues dropped from $1.58 million on January 2 to just $21,927 by January 21.
This sharp decline of almost 99% has raised eyebrows in the cryptocurrency community, and speculation is growing about its underlying causes.
Is Meme Coin Mania Responsible for Declining Virtual Revenue?
according to Data From Dune Analytics, Virtual Protocol’s daily trading revenue has been declining since reaching its peak on January 2nd.
An important factor behind the decline in revenue appears to be the rise of meme coins, especially Trump and Melania tokens. They have dominated the market spotlight over the past week.
As these tokens gain traction, they drain liquidity from other sectors, including AI agent markets. This resulted in a 10% drop in the market capitalization of AI tokens on January 20.
The surge in popularity of Trump and Melania coins, driven in large part by social media hype, has led to a shift in investor focus. As new meme currencies began to gain traction, capital was reallocated to chase the hype surrounding these tokens.
Additionally, one user They point out that with so many projects launched in such a short period of time, interest has been spread too thin.
“Do you think this is a dilution of value because so many people/projects/things were launched in such a small time frame? The biggest driver of value is interest, but if that interest is spread too thin across too many things, nothing gets enough traction.” interest. chirp.
This theory makes sense in the cryptocurrency market, where interest is often stronger than the fundamentals behind the project. Also, meme coins tend to outperform more stable projects as the market focuses on the latest viral tokens.
The Virtuals Protocol, which has attracted significant attention, now faces the challenge of recovering from the sharp loss of daily revenue. The protocol will need to regain its footing soon. It must either attract new users or bring back those who have been swept up in the coin craze.
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