- Virtuals Protocol’s daily revenue has collapsed to approximately $500, compared to its peak of over $500,000 in early January.
- New AI agent creation on the platform has stalled, with no new launches in about a week versus 1,000 daily launches in November.
- Critics argue the current generation of AI agents lacks functionality, describing them as “ChatGPT wrappers” with limited utility.
Virtuals Protocol, a platform for creating and monetizing Artificial Intelligence agents, has seen its daily revenue collapse to just $500 as interest in crypto AI agents continues to decline. Blockworks researcher Sharples described this downward trajectory as “probably one of the wildest crypto charts of the cycle” in an April 8 post on X.
The platform’s revenue has plunged dramatically since January 2, when the Virtual Protocol (VIRTUALS) token reached its all-time high of $4.61 and daily revenue exceeded $500,000. According to Blockworks data, this peak appears to have marked the beginning of a sustained downtrend for the AI agent sector.
Creation of AI Agents Grinds to a Halt
Sharples noted that approximately a week has passed without any new AI agents launching on Virtuals. This represents a stark contrast to late November when the platform was facilitating over 1,000 new AI agent creations daily, according to Dune Analytics data. The decline persisted even after the project announced an expansion to Solana on January 25.
By April 7, Virtuals Protocol generated “less than $500” in daily revenue, with its token price dropping to as low as $0.42. Dune Analytics shows the platform has generated $39.1 million in total lifetime revenue despite the recent downturn.
AI Agents Criticized for Limited Utility
Many industry observers have criticized AI agents for their lack of functionality. AI commentator BitDuke remarked about Virtuals’ revenue decline: “ChatGPT wrappers are no longer interesting, who could have guessed.”
DeGen Capital core contributor Mardo suggested that while broader market conditions have influenced Virtuals’ decline, the platform’s terms with builders may also be a factor, including “withholding token taxes that other platforms freely give back.”
The broader AI agent market now has a total market capitalization of $153.81 million according to Dune Analytics. Nearly half of this ($76.6 million) belongs to AIXBT, which analyzes crypto sentiment on X to identify trends. However, AIXBT has fallen 92% from its January 16 all-time high of $0.90, trading at $0.07 as of publication, according to CoinMarketCap data.
Despite the current downturn, Infinex founder Kain Warwick told Magazine that AI agents may still have potential for a comeback, even though the “first version of AI slop agents” are “garbage.”
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