Virtuals Protocol, a leading platform for creating and monetizing AI agents, is experiencing a dramatic decline in revenues. Nowadays, the daily revenue stands at around $500, a significant drop from the heady days of January when it soared above $500,000. The corresponding token price has also taken a hit, sliding downwards 90% to the current $.42.
Once a flourishing hub of AI creation, Virtuals Protocol has not seen a new AI agent introduction for about a week. Back in late November, the platform proudly facilitated more than 1,000 new AI agents daily. The downward trend persisted even after news in late January announced that the project had expanded to Solana.
The total market cap of the AI agent market stands at $153.81 million. Interestingly, almost half of that, $76.6 million, is attributed to AIXBT, which assesses crypto sentiment on various social media platforms. Since peaking at $.90, the AIXBT token has shed 92% of its value and is currently trading at $0.07.
On the other hand, the crypto market slump can’t be blamed entirely on adverse market conditions. Some insiders, like DeGen Capital contributor Mardo, suggest that company policies might also be a contributing factor in Virtuals’ decline. It’s also worth noting that the general downturn in the crypto market is happening under the specter of a potential recession due to increased tariffs.
Despite the revenue drop and the criticism regarding the functionality of AI agents, there are still a few who remain optimistic about a possible comeback. AI may still win the day, despite the lukewarm reception of the “first version of AI slop agents.”