The cryptocurrency VIRTUAL fell 12% in a day, extending weekly losses to 11% as broader market sentiment weakened. Capital exited its derivatives market, with open interest dropping by $9.4 million to around $76 million, while short positioning reached its most aggressive level this year. However, spot investors began accumulating during the decline, buying approximately $245,000 worth of tokens. On-chain data showed a simultaneous drop in user activity and protocol revenue, adding to the asset’s challenges.
The VIRTUAL token faced significant selling pressure entering the weekend, falling 12% as the broader crypto market slipped. This extended its weekly losses to 11%, with the setup suggesting limited room for an immediate rebound.
The price decline coincided with a sharp shift in the perpetual futures market, marked by declining capital inflows and increased short dominance. Forced liquidations remained limited, totaling roughly $431,000, indicating most traders closed positions voluntarily.
Data from the OI-Weighted Funding Rate dropped to -0.0411% on February 28th, its lowest reading of the year. This level of aggressive short positioning was last seen in October 2025, just before a sharp downturn.
Despite derivatives traders leaning bearish, spot investors appeared relatively composed. Spot buyers accumulated approximately $245,000 worth of VIRTUAL while prices were falling, marking the first notable accumulation phase since February 24th.
On-chain metrics, however, painted a more cautious picture for Virtuals Protocol. Data from Artemis showed the user count dropped to roughly 24,000, while revenue fell to around $32,000 from $133,000 on February 14th. This weakening activity underscores structural concerns regarding on-chain demand.
