- Kraken lists Solana version of Virtuals token originally launched on Coinbase’s Base Blockchain.
- Virtual Protocol’s market cap dropped from $5 billion to under $1 billion in four weeks.
- Project expanded to Solana Blockchain on January 25, offering 1% trading fee returns to ecosystem fund.
- Coinbase hasn’t listed the token despite it originating on their Base blockchain.
- Token aims to serve multiple Metaverse functions including digital identity and gaming transactions.
In an unexpected move highlighting the evolving dynamics of blockchain interoperability, cryptocurrency exchange Kraken has added support for the Solana-based version of Virtuals (VIRTUAL), a token originally launched on Coinbase’s Base blockchain platform.
The protocol’s migration to Solana represents a significant shift in strategy, occurring just as the token experienced a substantial market correction. According to CoinGecko data, VIRTUAL’s market capitalization plummeted from $5 billion in early January to less than $1 billion currently, marking a 70% decline in value over four weeks.
On January 25, Virtuals Protocol announced its expansion to the Solana ecosystem, implementing various incentives including developer grants and a dedicated liquidity pool on the Meteora exchange. The protocol committed to channeling 1% of trading fees back into a Solana-denominated ecosystem fund.
The token’s utility spans several metaverse applications, including digital identity verification, ticketing systems, and cross-platform NFT ownership. However, Coinbase, despite operating the Base blockchain where VIRTUAL originated, has not listed the token on its main exchange platform. Users can still access VIRTUAL through Coinbase Wallet via decentralized exchanges, though the company explicitly distances itself from these transactions.
This development follows a broader trend of cross-chain asset deployment in the cryptocurrency sector, where projects increasingly seek to leverage multiple blockchain networks’ strengths rather than remaining confined to their original platforms. The ironic twist of Kraken listing a Base-originated token before Coinbase underscores the competitive dynamics within the cryptocurrency exchange landscape.
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