In a surprising turn of events, Virtuals Protocol’s AI Agents track, which was formerly a major source of income, has recently witnessed a sharp drop.
As a result, the daily revenue has slowly decreased to between $30,000 and $35,000 after peaking, representing a startling 96% fall. The Base-Virtual-App has seen the biggest decline, with daily revenue now falling below $1,000.
Investors are now worried that the decline in revenue will also result in a sharp decline in the price of the $VIRTUAL. At the press time, the coin is trading at $0.9856, down 15.67% as compared to the same time last day.
Virtuals Protocol’s Revenue Decline Suggests Change in Consumer Preference
The steep decline in daily revenue suggests a significant change in consumer preferences or a decline in interest in the platform’s features. The decline is indicative of larger issues that Virtuals Protocol is facing, which could be brought on by heightened competition, technical constraints, or modifications in user behavior.
The platform may need to change its offers or reevaluate its business plan as it struggles with these issues in order to acquire momentum in a market that is becoming more and more competitive.
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Why is Virtuals Protocol Loosing Market Heat?
Virtuals Protocol has seen a decline in its market cap primarily as the industry has lost momentum and interest in Virtuals Protocol’s products diminished, causing a drop in user interaction and transaction volume.
At the press time, the token’s market cap stands at $640.49M, down 15.69%.
Furthermore, the platform’s dependence on particular apps, such as Base-Virtual-App, which now brings in less than $1,000 per day, emphasizes how susceptible it is to trends in specialized markets.
Additionally, users may have been lured away by growing competition from more inventive, recent platforms. Virtuals Protocol’s growth has also been hampered by its unclear diversification and inability to adjust to changing market demands, which has prevented it from regaining its prior market capitalization.
Will $VIRTUAL Price Fall in The Future?
With the decline in the market cap and appeal, the present sentiment is bearish and the Fear & Greed Index is at 16 (Extreme Fear).
Over the previous 30 days, Virtual Protocol saw 12 out of 30 (40%) green days and 21.39% price volatility. With three technical analysis indicators indicating optimistic signals and twenty-three indicating bearish signs, the overall sentiment for the price prognosis of Virtual Protocol is bearish.
An indicator that is widely used to determine if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum oscillator. The VIRTUAL market is in a neutral position at the moment, as indicated by the RSI reading of 38.22.
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