VIRTUAL Before the test: Is the growth sustainable as user activity becomes lively again?

Virtuals Protocol (VIRTUAL) – a token associated with the artificial intelligence sector – has surprised many by ignoring pessimistic forecasts about the risk of entering a “bubble” phase, continuing its impressive upward trend.

Previously, VIRTUAL experienced a correction pressure with a 12% decline and entered a downward trend. However, in the past 24 hours alone, this token has reversed strongly, rising to lead the market with an increase of about 21% at the time of recording.

This notable recovery occurred immediately after a community vote, when over 86,000 out of a total of 104,000 participants – approximately 83% – expressed optimistic views. This positive consensus quickly spread and was reflected clearly in both on-chain and off-chain activities, indicating investor confidence is returning to VIRTUAL.

User growth and revenue support the price rally

Investor activity around VIRTUAL remains high. According to Artemis, user engagement and protocol revenue have both increased significantly in the past 24 hours.

Data shows that the number of spot traders transacting VIRTUAL on decentralized exchanges has risen to 3,700, the highest since December 19.

The increasing trading volume indicates greater acceptance and use of VIRTUAL, thereby driving up the price and improving revenue efficiency.

Source: Artemis According to DeFiLlama, protocol revenue in the past 24 hours alone has exceeded $26,000, a level only seen in mid-December, when overall market sentiment was still very pessimistic.

The simultaneous increase in user numbers and revenue suggests a positive outlook is being reinforced, which could support further price increases.

Other driving factors remain in play

The derivatives market is becoming a key driver in VIRTUAL’s recent volatility, as liquidity flows have surged thanks to a wave of investors opening long positions (Long).

Market data shows total liquidity has increased by more than $24.4 million in just 24 hours, mostly from Long contracts, reflecting positive investor expectations.

Source: CoinGlass Additionally, data from CoinGlass on Funding Rate based on Open Interest (OI) — a metric measuring the liquidity status of perpetual contracts based on the balance between buyers and sellers — also supports this trend. Typically, a positive funding rate indicates bullish dominance. At the time of writing, this index stands at 0.0055%, suggesting market sentiment is leaning toward a moderate optimistic outlook.

Meanwhile, data on long/short ratios — reflecting the correlation between buy and sell positions — continues to confirm buying pressure dominance, as Long contracts traded overwhelmingly surpass Short positions.

Unfilled liquidity zones remain a major risk

From an analysis perspective of liquidation clusters on the price chart, the risk of correction has not been entirely eliminated.

These liquidation clusters often act as “price magnets,” serving as support zones or forming important resistance levels. On the chart, they are usually highlighted with bright colors such as green or yellow, making it easier for investors to identify sensitive liquidity areas.

Source: CoinGlass Currently, most liquidity clusters are still concentrated below the current trading price, reflecting downward momentum still prevailing over upward forces.

However, the risk of a sharp decline seems to be contained. The reason is that the liquidation value of short positions (Short) has exceeded that of long positions (Long), creating a relative advantage for long holders. Specifically, at the time of writing, total Short liquidation value is around $491,000, significantly higher than the $134,000 of Long positions.

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