Virtuals Protocol Revenue Drops 99% Amid Meme Coin Frenzy
Artificial intelligence agent platform Virtuals Protocol has seen an alarming drop in daily revenue. Revenue plummeted from $1.58 million on January 2 to $21,927 on January 21.
The sharp drop of nearly 99% has the cryptocurrency community concerned, with speculation mounting about its root cause.
Is the Meme Coin craze to blame for declining virtual revenue?
according to data from dune analyze, Virtual protocol daily transaction income It has declined since peaking on January 2.
A big factor behind the revenue decline appears to be the rise of memecoins, particularly the TRUMP and MELANIA tokens. They have been the focus of market attention over the past week.
As these tokens gain traction, they drain liquidity from other industries, Including artificial intelligence agent market. This even resulted in AI token market value drops by 10% January 20th.
surge The popularity of Trump and Melania coinsdriven by social media buzz, caused Shifting investor focus. As new memecoins begin to gain popularity, capital is reallocated to chase the hype surrounding these tokens.
Additionally, one X (Twitter) user expressed his opinion on the situation, indicating that something suddenly happened Virtuals Protocol revenue declines Can be attributed to “value dilution”. They noted that with so many projects launched in such a short time, attention was spread too thin.
“Do you think it’s value dilution because so many people/projects/things are being launched in such a short period of time? The biggest value driver is attention, but if it’s spread over too many things… nothing can get enough attention,” they Tweet.
This theory makes sense in the crypto market, where attention is often stronger than the fundamentals behind a project. Additionally, meme coins tend to outperform more stable projects as the market focuses on the latest viral coin.
Virtual protocols, arousing great interestnow faces the challenge of recovering from significant losses in daily income. The agreement needs to get back on its feet as soon as possible. It must either attract new users or those swept up in the meme coin craze.
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