Virtuals Protocol, an AI agent platform on Solana, has seen a staggering decline in daily trading revenue, plummeting from over $1 million in January to approximately $34,792 by late February. This drop is attributed to a broader decline in demand for AI agents, which is affected by macroeconomic pressures, unproven utility, and market instability. The protocol's native token, VIRTUAL, has also suffered dramatically, dropping 35.2% in value over the past week and trading 88.8% below its all-time high. The platform's market capitalization has fallen from $1.9 billion in December 2024 to about $360 million. Metrics for new agent creation have dropped significantly, with daily new agents falling from peaks of 1,300 to fewer than 10. Despite these challenges, the team has diversified revenue by holding $12.1 million in cbBTC, providing some buffers against volatility as the sector faces structural deficits and a cooling AI momentum in traditional finance.

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