Why did the price of VIRTUAL fall?

Virtuals Protocol (VIRTUAL) dropped 0.84% in the last 24 hours, continuing a nearly 30% decline over the past month. This decline is driven by weak technical signals, fading excitement around AI-related tokens, and overall uncertainty in the cryptocurrency market.

1. Bearish Technical Signals – The price remains below important moving averages, with the Relative Strength Index (RSI) close to oversold levels.
2. Cooling AI Token Momentum – After a strong rally linked to Nvidia news, VIRTUAL is lagging behind other AI tokens.
3. Decreased Network Activity – The number of holders, trading volume, and transaction fees have all dropped significantly since November.

Deep Dive

1. Technical Weakness (Bearish Impact)

Overview: VIRTUAL is currently trading at $0.697, which is below its 7-day simple moving average (SMA) of $0.70 and its 30-day SMA of $0.80. The RSI, a tool that measures momentum, is between 38 and 40, indicating bearish pressure. The MACD, another technical indicator, shows only weak attempts at recovery.

What this means: When the price stays below these moving averages, it usually means sellers have the upper hand. The $0.70 price level is now a key support point—if the price falls below this, it could trigger a larger sell-off down to around $0.63, the low point seen in November.

What to watch: A daily close above $0.72 would be a positive sign, potentially reversing the current downward trend.

2. AI Token Fatigue (Mixed Impact)

Overview: AI-related tokens saw a 4.46% jump on December 10 following Nvidia’s $20 billion deal with Groq (TokenPost). However, VIRTUAL’s 4.3% gain was weaker compared to other AI tokens like Bittensor, which rose 6%.

What this means: VIRTUAL’s smaller gain suggests some doubt about its ability to maintain strong revenue streams. For example, its transaction fees in Q3 were $8.5 million, well below its peak of $20 million. Analysts are increasingly scrutinizing AI crypto projects to see if they offer real-world value.

3. Network Contraction (Bearish Impact)

Overview: The number of active VIRTUAL holders has dropped from 1.1 million in November to 1.03 million. Daily trading volume has also plunged by 90%, down to $80 million (AMBCrypto).

What this means: Fewer participants in the network mean less liquidity, which can lead to bigger price swings. The order book—the list of buy and sell orders—around $0.70 to $0.72 is thin, increasing the risk of volatility.

Conclusion

The recent decline in Virtuals Protocol (VIRTUAL) is due to a combination of technical weaknesses, a shift away from AI tokens, and weakening network fundamentals. While the coin is currently oversold and could see a short-term bounce, a sustained recovery will require breaking above the $0.72 resistance level and renewed activity within its ecosystem.

Key watch: Bitcoin’s price movements are important here. If Bitcoin falls below $87,000, it could lead to more selling pressure on altcoins like VIRTUAL.

What could affect the price of VIRTUAL?

Virtuals Protocol is navigating a challenging mix of excitement around AI and tough market conditions.

1. AI DAPP Launch (Positive) – The first AI app is set to launch in two weeks, which could boost developer interest.
2. Ecosystem Shrinking (Negative) – Token trading volume has dropped 10 times since last November, showing less use.
3. AI Sector Shifts (Mixed) – Nvidia’s big deals help AI tokens, but Bitcoin’s strong position limits gains for other coins.

In-Depth Look

1. Key Drivers: Launching AI Products (Positive Outlook)

What’s Happening: Virtuals plans to release its first AI decentralized app (DAPP) by early January 2026. This builds on recent upgrades like the Agent Commerce Protocol. The project has $16 million in its treasury and partnerships with AI-focused companies OpenMind (robotics AI) and Nethermind (security agents), indicating it’s ready to expand its use cases.

Why It Matters: If the new app gains users, it could stop the token’s 77% price drop over the past year by showing real value on the blockchain. However, the token has already fallen 50% since October, reflecting doubts about whether the project can deliver. Success depends on clear user growth after launch.

2. Market Conditions: Liquidity Problems (Negative Outlook)

What’s Happening: Daily trading volume has plunged from $1 billion to $41 million since November 2025, and liquidity pools have shrunk to $13 million. Quarterly fees earned dropped 57% to $8.5 million, according to AMBCrypto.

Why It Matters: Lower trading activity makes the market more volatile. The $0.70 price level has acted as support before, but if it breaks, selling could speed up. Less fee income also weakens the buyback program, which uses all fees to repurchase VIRTUAL tokens, removing an important price support.

3. Sector Sentiment: AI Excitement vs. Market Reality (Mixed Outlook)

What’s Happening: AI-related tokens like VIRTUAL rose 4-11% on December 25 after Nvidia announced a $20 billion deal with Groq (TokenPost). However, the overall crypto market shows caution, with a “Fear” index at 28/100 and Bitcoin controlling 59% of the market, which limits enthusiasm for alternative coins.

Why It Matters: VIRTUAL’s price moves with AI trends but needs investors to shift focus from Bitcoin to altcoins to keep rising. Keep an eye on the Altcoin Season Index; if it goes above 50, it could mean more money flowing into altcoins like VIRTUAL.

Conclusion

Virtuals Protocol’s future depends on proving its AI app adds real value before liquidity dries up. The $0.70 price level is critical—holding it could stabilize the token, but falling below might trigger more selling. The upcoming DAPP launch must show that Virtuals is more than just another project riding the AI hype. The big question: can Virtuals turn its 1.03 million token holders into active users, or will interest fade?

What are people saying about VIRTUAL?

The Virtuals Protocol community is divided between traders focused on price movements and long-term supporters who believe in the project’s AI-driven potential. Here’s what’s currently shaping the conversation:

1. Price battle around $0.70
2. Growth in the ecosystem versus declining trading volume
3. Optimism about AI-generated revenue driving demand

In-Depth Look

1. @HamedSignals: Key price levels suggest a bearish outlook

“If the price breaks above $0.75, it could reach $0.95; if it falls below $0.65, it might drop to $0.48.”
– @HamedSignals (705 followers · 1.8K impressions · 2025-12-25 16:15 UTC)
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What this means: The current price ($0.699) is below a critical resistance level ($0.75), and technical indicators like the Relative Strength Index (RSI) at 40 and a pattern of lower highs suggest sellers are in control, pointing to short-term downward pressure.

2. @BTC_DailyAlpha: Weekly closing price is crucial, outlook is mixed

“Holding $0.70 could lead to a bounce back to $0.80; losing that support might push the price down to $0.63.”
– @BTC_DailyAlpha (1.1K followers · 2.6K impressions · 2025-12-22 00:05 UTC)
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What this means: The market is uncertain right now. Trading volume has dropped by 21% in the last 24 hours, and the market cap stands at $458 million, indicating less liquidity. This could lead to bigger price swings around the $0.70 level.

3. @BasedGranpa: Strong revenue growth supports a bullish view

“With $75 million in annual on-chain revenue, the protocol plans to buy back 100% of tokens.”
– @BasedGranpa (777 followers · 9.8K impressions · 2025-12-21 13:48 UTC)
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What this means: Long-term outlook is positive because the protocol’s fees have increased by 148% month-over-month (source: DeFi Llama). This revenue could reduce the number of tokens available, potentially increasing their value. However, the current price doesn’t yet reflect these fundamentals.

Conclusion

The outlook for Virtuals Protocol ($VIRTUAL) is mixed. Technical indicators show some challenges, while the growth in AI-driven adoption offers hope. The price is currently under pressure, with the crypto market sentiment low (CMC Fear & Greed Index at 28). The $0.70 support level is critical, especially after a nearly 30% drop over the past month. Keep an eye on ecosystem updates like the Base L2 integrations to see if they can help reverse the downward trend.

What is the latest news about VIRTUAL?

Virtuals Protocol is navigating the ups and downs of the AI market and cryptocurrency space. Strong partnerships and recognition in the AI sector are helping balance out recent price drops.

1. Nvidia-Groq AI Deal Boosts Rally (December 25, 2025) – VIRTUAL’s price jumped over 4% as AI-related tokens rose following a $20 billion chip partnership.
2. Robotics Partnership with OpenMind (December 8, 2025) – Virtuals expanded into robotics by enabling robot payments and coordination through its platform.
3. Top AI Coin for 2026 (December 24, 2025) – Experts highlight VIRTUAL’s strong revenue in the AI agent space, making it a leading coin to watch next year.

In-Depth Look

1. Nvidia-Groq AI Deal Boosts Rally (December 25, 2025)

What happened:
Nvidia teamed up with AI chipmaker Groq in a $20 billion deal, sparking a surge across AI-related cryptocurrencies. Virtuals Protocol (VIRTUAL) saw its price rise more than 4% during the day. This partnership focuses on technology that helps AI run efficiently on decentralized networks like blockchains.

Why it matters:
This deal supports the growing need for infrastructure that powers AI agents, which is a key use for VIRTUAL. However, the token’s price dipped slightly afterward, showing how volatile the crypto market can be. (TokenPost)

2. Robotics Partnership with OpenMind (December 8, 2025)

What happened:
Virtuals Protocol joined forces with OpenMind AGI to connect AI software agents with physical robots. This allows robots to make payments and coordinate tasks autonomously, expanding VIRTUAL’s role beyond digital AI into real-world robotics.

Why it matters:
This move could open new opportunities for Virtuals, but it also comes with challenges in execution. The token’s price dropped nearly 30% for the month, reflecting broader market weakness. Still, robotics integration could create new revenue streams over time. (Virtuals Protocol)

3. Top AI Coin for 2026 (December 24, 2025)

What happened:
Industry analysts named Virtuals Protocol a top AI cryptocurrency to watch in 2026. Despite a drop from $20 million to $8.5 million in quarterly revenue, VIRTUAL leads in the AI agent niche, focusing on practical AI workflows compared to competitors who focus mainly on machine learning models.

Why it matters:
This recognition is positive for VIRTUAL’s reputation, but the recent 50% price drop over 60 days shows some investor caution about how quickly the project can grow its revenue. Keep an eye on first-quarter 2026 earnings for signs of recovery. (CoinMarketCap)

Conclusion

Virtuals Protocol is balancing promising developments in AI and robotics with challenges like price volatility and market skepticism. The key question is whether its revenue can stay above $10 million per quarter to support its $458 million market value. Watch for updates on the growth of its AI agent ecosystem in February for clearer insights.

What is expected in the development of VIRTUAL?

Virtuals Protocol is making progress with these key milestones:

1. First AI DAPP Launch (Early January 2026) – Rolling out its first AI-powered decentralized app.
2. Robotics Integration via ACP (Q1 2026) – Connecting AI agents to real-world robots.
3. Super APP Distribution Expansion (2026) – Making it easier for users to access tools and services within the Virtuals ecosystem.

In-Depth Look

1. First AI DAPP Launch (Early January 2026)

What’s happening: Virtuals Protocol plans to launch its first AI-driven decentralized application (DAPP) shortly after December 26, 2025. This app will use AI agents to perform tasks like market analysis, automated trading, and virtual interactions. It will operate using the Agent Commerce Protocol (ACP), which helps coordinate these AI agents smoothly (Virtuals Protocol).
Why it matters: This launch is a positive sign for VIRTUAL because it could attract more users and show real-world uses for AI agents. This may increase demand for $VIRTUAL tokens, which are used to pay and coordinate within the system.

2. Robotics Integration via ACP (Q1 2026)

What’s happening: Virtuals Protocol is partnering with OpenMind AGI to expand the ACP so AI agents can control physical robots. This means software agents won’t just operate online—they’ll be able to interact with the physical world through robots (Virtuals Protocol).
Why it matters: This development is cautiously optimistic. It broadens how VIRTUAL can be used but comes with challenges like making sure the technology works well with different hardware. If successful, Virtuals could become a leader in connecting AI with real-world machines.

3. Super APP Distribution Expansion (2026)

What’s happening: The Super APP is designed to make it easier for users to access Virtuals’ tools, such as deploying AI agents, swapping tokens, and using features across different blockchains. While there’s no exact launch date yet, this is a top priority for 2026 (Virtuals Protocol).
Why it matters: If done right, the Super APP could attract users who aren’t tech experts by simplifying the experience. This could help grow the network significantly. However, delays or a complicated interface might slow adoption.

Conclusion

Virtuals Protocol’s roadmap focuses on expanding AI capabilities (with the DAPP launch), connecting digital AI agents to the physical world (robotics integration), and improving user access (Super APP). While success depends on technical execution and market interest, these milestones have the potential to strengthen Virtuals’ position in the emerging AI-agent economy. How will the overall crypto community’s view of AI projects influence VIRTUAL’s growth in 2026?

What updates are there in the VIRTUAL code base?

Virtuals Protocol is actively improving its technology, focusing on building smarter AI tools and expanding across different blockchain networks.

1. ACP SDK Updates (December 19, 2025) – Upgraded software tools for developers to better coordinate AI agents.
2. Protocol Contracts Overhaul (December 16, 2025) – Improved governance features and ways to track community contributions.
3. Butler AI Upgrade (November 25, 2025) – Switched to Google’s Gemini 3 Pro AI for more efficient and reliable transactions.

In-Depth Look

1. ACP SDK Updates (December 19, 2025)

What happened: The Agent Coordination Protocol (ACP) software development kits (SDKs) for Node.js and Python were enhanced to support faster and smoother communication between AI agents.

Developers can now process over 3,000 requests per second—more than double the previous 1,200—while reducing transaction costs by grouping actions together. New WebSocket features allow real-time monitoring of agent activity.

Why it matters: This update makes it easier and cheaper for developers to build AI-powered tools on Virtuals Protocol, which could help the platform grow faster. (Source)

2. Protocol Contracts Upgrade (December 16, 2025)

What happened: The core smart contracts that manage the protocol’s governance were redesigned to allow more detailed voting on how funds are spent.

A new feature called "Contribution NFTs" was introduced. These are special tokens that record individual contributions from developers and community members but can’t be traded. Also, submitting proposals now costs 40% less in transaction fees thanks to more efficient coding.

Why it matters: While the transition might be complex at first, these changes encourage more community involvement in decision-making, which is positive for the protocol’s future. (Source)

3. Butler AI Upgrade (November 25, 2025)

What happened: Virtuals’ AI assistant, Butler, upgraded from using GPT-4 to Google’s Gemini 3 Pro AI, improving how it handles multi-chain token swaps.

Testing showed an 18% drop in failed transactions because Butler now better calculates price changes (slippage) across Ethereum, Base, and Solana blockchains. It also automatically finds the best swap routes using past liquidity data.

Why it matters: Smoother and more reliable swaps improve user experience, which can lead to more activity on the platform and potentially higher $VIRTUAL token usage and burn rates. (Source)

Conclusion

These recent updates highlight Virtuals Protocol’s leadership in AI-driven blockchain infrastructure. Improvements in developer tools, governance, and user experience set the stage for future growth. Although the token price has dropped about 25.7% this month, the ongoing development momentum suggests increasing interest from developers. The upcoming OpenMind partnership, which aims to integrate robotics, could be the next big catalyst for growth.