By Key Points
- VIRTUAL token gained 300% in May, up 46% in 24 hours
- 93% of tokens are held by top 100 wallets
- Protocol revenue remains low despite price surge
- Virgin Points system driving new demand from retail users
The VIRTUAL Token is on fire. It surged nearly 300% in May, including a 46% rally in just 24 hours, pushing it to the top of CoinGecko’s trending list. This explosion has drawn in a wave of retail interest, likely fueled by a mix of AI excitement and speculation.
But under the surface, data paints a concerning picture.
Blockchain analytics firm Nansen reports that the top 100 wallets hold 93% of the total VIRTUAL supply. That level of concentration is dangerous — it gives immense power to a small group of holders and makes the token highly vulnerable to price manipulation and sharp dumps.
VIRTUAL price performance. Source: CoinGecko – Techtoken
Smart Money wallets have increased their positions by 14.35%, suggesting strategic positioning. But it’s unclear if that positioning is based on long-term conviction or short-term opportunity.
At the same time, Dune Analytics shows the protocol’s revenue peaked at just $163,279, despite the token’s skyrocketing value. That’s not a healthy signal — strong tokens usually grow because their underlying platforms generate real usage and income. This disconnect between price and performance is raising eyebrows across the industry.
Virtuals Protocol revenue. Source: Dune dashboard – Techtoken
Some users on X (formerly Twitter) are already sounding the alarm: “VIRTUALS’ price pumped by 3x since April 20th, while its protocol revenue looks like this,” one wrote, linking to a flat revenue chart.
The top 100 wallets now hold 93% of $VIRTUAL’s supply.
This isn’t just concentrated — it’s vacuum-sealed.
And Smart Money holdings? Up +14.35%.
Someone’s positioning. Quietly. pic.twitter.com/m1gICGznJa
— Nansen 🧭 (@nansen_ai) May 6, 2025
For a broader view of current market sentiment, check our crypto news roundup covering trending tokens, AI hype, and rising concerns over unsustainable growth patterns.
VIRTUAL token holders metric. Source: Nansen on X – Techtoken
Virgin Points System Spurs Retail Demand, But Risks Remain
So what’s driving the hype? A big factor is the launch of Virgin Points, a new rewards-based allocation system that aims to democratize early token access.
Unlike typical bonding curve models, Virgin Points use a Proof of Contribution system. This rewards users for participating in the ecosystem with early-stage allocations based on actual engagement, not just investment.
According to DWF Ventures, Virgin Points have driven notable growth:
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8,300 unique addresses
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18,900+ transactions
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2,274 transactions on May 5 alone
On Dune, data reveals that over 4.9 million VIRTUAL tokens have been committed to these early-stage launches by more than 10,000 participants, with an average daily commitment of 250,000 tokens.
VIRTUALS’ price pumped by 3x since April 20th, while its protocol revenue looks like this.
“Return to fundamentals”
“Completely ignores fundamentals” pic.twitter.com/6d1jLHFWtW
— DeFi Warhol (@Defi_Warhol) May 8, 2025
This mechanism seems to be encouraging real participation, especially from retail users, and may be responsible for the recent spike in VIRTUAL’s value.
Crypto analyst Hitesh Malviya has referred to this as the “second wave of AI agents”, praising the protocol’s fair launch features and innovative mechanics.
The 2nd wave of AI agents is here, and it’s happening on @virtuals_io in a new form.
Better lineup of agents, fair launch mechanism where retail gets a chance to invest into these tokens at a $250K FDV using a new mechanism called Virgin Points, which rewards more active… pic.twitter.com/oTXdyaLSu1
— hitesh.eth (@hmalviya9) May 9, 2025
Yet, even with this momentum, caution is warranted. As seen with past tokens that spiked on hype — such as what’s explored in the Trump XRP scandal or the Pi Network’s Finland controversy — community engagement alone doesn’t guarantee long-term value.
4/ How It Works & Performance
By replacing the bonding curve, it uses a Proof of Contribution system to reward users based on ecosystem participation through Virgen Points and $VIRTUAL tokens.
It has driven significant user engagement, with 8,300 unique addresses and 18,900… https://t.co/t0yI2O4cse
— DWF Ventures (@DWFVentures) May 9, 2025
Market Parallels Hint at a Larger Trend in Speculation
The VIRTUAL token rally is part of a wider trend sweeping across the crypto space. Tokens with AI narratives, airdrops, and retail-friendly mechanisms are surging in value — often ahead of actual usage.
We’ve seen similar price activity in other speculative tokens recently. For example, Binance Alpha reported $2.8 billion in volume as users chased airdrops, driven by rapid hype and short-term rewards.
Virtuals genesis launch. Source: Malviya on X – Techtoken
This rise of speculative bubbles can be traced to broader patterns, like the shift in Bitcoin dominance, which often marks a turning point where capital flows from Bitcoin into altcoins. These altcoin surges are typically short-lived unless backed by real value.
The VIRTUAL Token may be riding a similar wave, blending an AI-powered narrative with the promise of fair participation. But the combination of whale dominance, low revenue, and thin liquidity should raise red flags for serious investors.
While Smart Money inflows and social media buzz can push tokens higher in the short term, long-term sustainability comes from adoption, utility, and transparent tokenomics — not just headlines and hype.
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