The artificial intelligence agent creation and monetization platform Virtuals Protocol has seen its daily revenue plummet to just $500 as demand for crypto AI agents continues to wane.
“Probably one of the wildest crypto charts of the cycle,” Blockworks researcher Sharples said in an April 8 X post.
Steep decline in AI agent creation
Sharples said that it has “been about a week” since a new AI agent launched on Virtuals compared to late November when the platform was helping make over 1,000 new AI agents a day, according to Dune Analytics data.
On Jan. 2, when the Virtual Protocol (VIRTUALS) token hit an all-time high of $4.61, Blockworks data shows Virtuals’ daily revenue soared above $500,000.
However, that seemed to mark the start of a downtrend, signaling a potential top for the AI agent sector. The decline continued even after a Jan. 25 announcement that the project had expanded to Solana.
On April 7, Sharples pointed out that Virtuals generated “less than $500” in daily revenue, with its token price falling as low as $0.42.
Virtuals Protocol’s AI agents have generated a total lifetime revenue of $39.1 million. Source: Dune Analytics
The total AI agent market cap is $153.81 million, according to Dune Analytics. However, $76.6 million of that portion is allocated to AIXBT, which analyzes crypto sentiment on the social media site X to pick up on trends.
AIXBT has dropped 92% since hitting an all-time high of $0.90 on Jan. 16. As time of publication, it was trading at $0.07, according to CoinMarketCap data.
DeGen Capital core contributor Mardo said the current market conditions have played a role in Virtuals’ decline, but it could also be tied to terms Virtuals has with builders, such as “withholding token taxes that other platforms freely give back.”
Virtuals’ struggles come against the backdrop of the entire crypto market experiencing a downturn alongside global financial markets, as US President Donald Trump continues to ramp up tariffs and fears grow that it may lead to a recession.
AI agents in current form are “garbage”
However, many criticized AI agents for their lack of functionality. AI commentator, BitDuke said of the Virtuals’ revenue decline, “ChatGPT wrappers are no longer interesting, who could have guessed.”
Related: Not every AI agent needs its own cryptocurrency: CZ
AI commentator “DHH,” said in an April 8 X post, “I’m as AI positive as the next guy, but you’re delusional if you think any AI agent is full-on replacing a great programmer today. Who knows about tomorrow, but that day hasn’t arrived yet.”
Meanwhile, Infinex founder Kain Warwick recently told Magazine that AI may possibly have a comeback despite the “first version of AI slop agents” being “garbage.”
Magazine: Bitcoin heading to $70K soon? Crypto baller funds SpaceX flight: Hodler’s Digest, March 30 – April 5
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
