Virtuals Protocol Tokens Surge as AI Agent Demand Grows

Virtuals Protocol Tokens Surge as AI Agent Demand Grows

Virtuals Protocol saw its VIRTUAL token rise by 28% in the past day and 161% over the last week, hitting $1.38 and entering the top 100 cryptocurrencies by market cap. The rise is fueled by growing interest in AI-powered agents that autonomously perform tasks, boosting demand for the ecosystem.

Other related tokens, such as AIXBT, LUNA, and VADER also doubled in price. Virtuals Protocol initially launched as PathDAO, relaunched in January on Coinbase's Base, and started offering functionalities like meme coin generation, Telegram chatting, and music creation.

Virtuals aims to lead the AI x metaverse space by enabling virtual interactions through AI agents. Tokens in this framework provide rewards for staking and access to unique tools. You can read our article on Virtuals Protocol for more information on its tokenomics and how to create an AI agent on it.

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Hyperliquid's HYPE Token Jumps 233% After Airdrop

Hyperliquid's HYPE token surged by 233% after the distribution of 310 million tokens on November 29 in one of the largest airdrops in DeFi history. The token price increased from $3.90 to $9.09, pushing the fully diluted valuation (FDV) to $8.8 billion. HYPE serves as the staking asset for consensus and as the gas token for Hyperliquid's Ethereum-compatible layer, HyperEVM.

Hyperliquid distributed 31% of the 1 billion HYPE tokens to the community in one of DeFi's largest airdrops, alongside notable ones like Uniswap's. Another 38.8% is reserved for future emissions and rewards, while 23.8% went to core contributors under a one-year lock-up. The Hyper Foundation received 6% for operations, with no tokens allocated to private investors or centralized entities.

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Coinbase Halts USDC Yield Offering in Europe Due to MiCA

Coinbase will cease offering yields on USDC stablecoins to European Economic Area (EEA) customers after December 1, citing compliance with MiCA regulations. This impacts customers across the 30-nation EEA, sparking a backlash against the restrictive nature of these regulations. MiCA prohibits offering interest on stablecoins to mitigate associated financial risks.

Critics argue that the regulations often prevent beneficial consumer services, with Ripple Labs' David Schwartz voicing such concerns. Coinbase and Circle must fully comply with MiCA by December 30. Tether has already discontinued support for euro-pegged tokens in light of the new regulations. We remind you that last week Tether said it would discontinues support for its Euro stablecoin.

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Crypto Execs Reveal Debanking Issues Following US Election

Crypto executives are speaking out about past debanking experiences following Trump's US election win, highlighting an initiative called "Operation Choke Point 2.0." The plan allegedly aimed to cut crypto businesses from financial services, reminiscent of a 2013 DOJ effort targeting high-risk industries. Marc Andreessen and Elon Musk have highlighted widespread account closures and challenges.

Executives from Tornado Cash, Kraken, and Gemini have shared repeated incidents of debanking during the Biden administration. The expectation of a more crypto-friendly environment under Trump has encouraged many industry leaders to go public with their experiences. This includes allegations of major US banks cutting ties with crypto clients under direct orders.

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Data of the Day

The NFT market reached $562 million in sales volume in November, the highest since May, marking a 57.8% rise from October. CryptoPunks led the surge, with its floor price increasing by 47%, outperforming other collections like Bored Ape Yacht Club and Pudgy Penguins. The resurgence underscores sustained interest in blue-chip NFTs as the sector recovers.

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More Breaking News

• Ethena and Securitize propose including their USDtb stablecoin in Spark's $1 billion liquidity competition to expand real-world assets in DeFi.
• Pump.fun's weekly revenue drops 66% after disabling its livestream feature due to harmful content controversy.
• Curve partners with Elixir to bring BlackRock's BUIDL fund to DeFi, enabling token holders to mint and swap yield-bearing stablecoins on Curve.
• South Korea's Democratic Party delays the crypto capital gains tax implementation by two years, pushing it back to 2027.
• Solv Protocol aims to launch an "onchain MicroStrategy" to create a yield-generating Bitcoin reserve for decentralized finance.
• Spot Ethereum ETFs in the US see record single-day inflows of $333 million, led by BlackRock's ETHA and Fidelity's FETH.
• The UK Court of Appeal rejects Craig Wright's appeal, ending his legal battle to claim he is the pseudonymous Bitcoin creator, Satoshi Nakamoto.

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