Virtuals Protocol has emerged as the top-performing coin of the month and week, showcasing impressive gains of nearly 195% and 150% respectively. The market cap of Virtuals Protocol skyrocketed by an astounding 156.29% in April, crossing the significant milestone of $1 billion.
Despite these remarkable achievements, there has been a noticeable decline in daily active wallets on Base Network, with a staggering drop of 84.9% from the January highs. Similarly, Solana witnessed a 79.3% decrease in user activity, despite experiencing price gains. This decline in user engagement highlights a reduction in market participation, even amidst the price hype.
Technical analysis reveals that the RSI has surged to 84.75 and the MACD indicates a bullish crossover. Traders are closely monitoring the key zone of $2.00–$2.20, anticipating a potential correction or breakout in the near future.
Furthermore, decentralized exchange (DEX) volume has witnessed a substantial increase of 683% in just two weeks, reaching $27.6 million. However, this volume is still significantly lower, standing at 89.7% below January’s peak of $267.5 million. This disparity reflects a lack of market depth despite the surge in price.
Currently, Virtual Protocol’s native coin, $VIRTUAL, is trading at $1.73, with a market cap of $1.13 billion and a 24-hour trading volume of $652.85 million. This signifies a notable 32.66% increase in price and a significant 98.70% surge in volume.
Transitioning from the initial hype surrounding Virtual Agent creation, the market has now reached a plateau following an early surge in demand. The creation of AI agents within the Virtual Ecosystem spiked rapidly from 68 agents in October to 16,000 agents by mid-January. However, the numbers have since stabilized between 16,000 and 17,695 agents over the past four months, indicating a consolidation phase.
Despite expanding to Solana, Virtuals Protocol has experienced a sharp decline in daily active wallets (DAWs). The protocol recorded a peak activity of 58,641 DAWs on Base and 2,562 on Solana on January 2, 2025. However, by April 30, DAWs had plummeted to just 8,857 users, marking an 84.9% drop from the peak in January.
While Virtuals Protocol has witnessed a remarkable 200% price rally in recent weeks, the trading volume on decentralized exchanges remains relatively weak. The total DEX volume on April 29 stood at $27.6 million, with $26.4 million on Base and $1.17 million on Solana. Despite the substantial increase in volume, it remains significantly lower than the peak observed in January, indicating subdued market participation.
In conclusion, the parabolic surge in VIRTUALUSD is nearing exhaustion, with a key profit zone identified for crypto traders. The asset is displaying a classic parabolic curve structure, with three completed bases fueling a sharp vertical rally. Traders are advised to closely monitor the sell point of $2.00–$2.20, as technical indicators suggest a possible reversal or consolidation in the near future. By staying vigilant and managing profit-taking strategies effectively, traders can navigate the volatile market landscape of Virtuals Protocol with confidence.