Can the Staking Model Fuel the Rally?

VIRTUAL, a native token of Virtual Protocol is gaining momentum as one of the most promising AI-native tokens, fueled by a revamped staking model and increasing demand from on-chain contributors.

Virtual Protocol Overview

Virtuals Protocol is a decentralized AI platform built on the Base blockchain, enabling users to create and co-own AI agents. The VIRTUAL token serves as the base currency and liquidity pair for all interactions with agents, acting as the economic backbone of the entire ecosystem.

The total supply of $VIRTUAL is 1 billion tokens (non-inflationary), distributed as follows:

• 60% (600 million) in free circulation,
• 5% (50 million) allocated to liquidity pools,
• 35% (350 million) held in the ecosystem treasury.

Source: Virtual Protocol

Listings on several major centralized exchanges (CEXs), the liquidity of $VIRTUAL has significantly improved, making it easier for investors to access and participate.

In addition, Virtuals is actively expanding its strategic partnerships, collaborating with projects like Illuvium (a Web3 game) to integrate AI into gaming, and partnering with Nillion, Virtual Labs, and Aikoi.ai to develop private data storage, AI agents, and game integration.

In March 2025, Virtuals launched the Virtuals Partners Network (VPN) – a network that brings together investment funds (such as Delphi Ventures), industry experts, and leading researchers to support AI founders building projects on the platform.

Read more: Trading with Free Crypto Signals in Evening Trader Channel

$VIRTUAL Staking Mechanism & Comparison to Binance Alpha

Virtuals Protocol has introduced a vote-escrow (ve) staking model designed to incentivize long-term holding and reward active contributors.

When users stake their $VIRTUAL tokens (with a lock-up period of up to 2 years), they receive veVIRTUAL – an escrowed governance token representing long-term commitment and ecosystem privileges. Notably, 20% of the total reward points (Virgen Points) in the system are allocated to veVIRTUAL holders.

Source: Virtual Protocol

Previously, simply holding $VIRTUAL in a wallet was enough to accumulate points. Now, only users who stake and hold veVIRTUAL are eligible to earn points, meaning tokens must be actively locked to fully participate in airdrop campaigns.

The veVIRTUAL model transforms $VIRTUAL from a passive asset into an active participation tool: stakers not only gain future governance rights (voting) but also priority access to rewards and airdrops from new projects.

Specifically, veVIRTUAL holders are eligible to receive portions of the “Genesis Airdrop” — free token distributions from new projects launching on Virtuals. Distributing rewards through veVIRTUAL ensures that only long-term, committed users benefit, making the system fairer than previous models.

Genesis Launch is the name for initial token offerings on the Virtuals platform. Each Genesis Launch runs for 24 hours, during which users stake $VIRTUAL along with their Virgen Points to register for a new token sale.

The system calculates allocation based on each user’s contribution ratio (points + staked tokens) relative to the total. If the total staked $VIRTUAL falls below a required threshold, all contributions will be refunded.

How $VIRTUAL Is Being Used

Within the Virtuals ecosystem, $VIRTUAL is more than just a governance or payment token –  it is an essential asset for earning Virgen Points, which function as allocation tickets for Genesis Launches. These points can significantly increase a user’s chance of receiving early access to new token sales at discounted prices.

Key use cases for $VIRTUAL include:

• Holding $VIRTUAL long-term: Wallets that hold $VIRTUAL earn daily Virgen Points based on holding duration and amount.
• Trading $VIRTUAL: Buying and selling also generate points, although at lower rates.
• Staking ecosystem tokens: Users can stake related tokens such as $VADER, $AIXBT, $SHEKEL, and $ALCOLYTE to earn points. Notably, $VADER offers the highest point multiplier (5% of daily allocation).
• Virtual Trenches participation: A special event that allows staking of Sentient or Prototype agents for daily points.
• Holding Genesis Launch tokens: Users who hold purchased tokens for more than 24 hours are eligible for bonus points.
• Content creation: Publishing or sharing quality posts about Virtuals on X (formerly Twitter) and linking them to the platform can also earn points based on engagement metrics.

This reward model amplifies demand for $VIRTUAL, as the token becomes a prerequisite for maximizing allocations and rewards. Instead of being passively held, $VIRTUAL is actively used across multiple verticals – a behavior that reduces supply pressure and supports price stability.

Source: Dune

We’ve seen similar token demand dynamics work well in the past:

• INJ (Injective) experienced rapid growth after introducing staking rewards and ecosystem incentives.
• SUI benefited from its Sui Quest program and airdrop ecosystem.
• BERA gained over 300% in three weeks following a combo of airdrops and staking campaigns.

These examples highlight a pattern: well-designed incentive loops often precede bullish token momentum.

Comparison with Binance Alpha

The token distribution approach of Virtuals Protocol shares several similarities and differences with Binance Alpha, Binance’s early-stage project support platform. Both systems are designed to incentivize user participation and reward long-term contributors through staking and point-based mechanisms.

Binance Alpha is a centralized platform within the Binance Wallet ecosystem, focused on introducing and supporting early-stage crypto projects. Participation in airdrops and TGE events depends on Alpha Points, which are accumulated based on asset balances and trading volume of Alpha tokens over the last 15 days.

Alpha Points are calculated daily and include:

• Balance Points: awarded based on wallet holdings (ranging from 1 to 3 points/day)
• Volume Points: increasing exponentially with trading activity.

Users must maintain a minimum Alpha Point threshold to qualify for participation in airdrops or TGEs. In specific cases like WIO, users are required to accumulate enough Alpha Points, and each participation consumes a portion of their points.

The key difference lies in the participation mechanism:

• Virtuals Protocol requires users to stake tokens and engage directly within the ecosystem.
• Binance Alpha, by contrast, is based on wallet balances and trading activity, without requiring staking.

Virtuals Protocol runs a decentralized, on-chain model on Base, unlike the centralized, custodial setup of Binance Alpha.

Binance Alpha leverages Binance’s user base, while Virtuals offers a decentralized launchpad driven by real on-chain contributions.

Virtuals builds a stronger community by rewarding staking, content creation, and active participation over passive wallet balances.

Protocol could evolve into a leading alternative to centralized launchpads, offering fairer access and stronger token performance for early supporters.

VIRTUAL Price Prediction: Short-term Outlook

Based on technical analysis and current market data, the short-term price range for $VIRTUAL is projected to be between $2.40 and $3.50.

Positive news flow and the overall recovery in the crypto market, $VIRTUAL has surged approximately +270% in the past 30 days, reclaiming the $2.00 mark by mid-May 2025.

However, technical indicators suggest that the $1.80–$2.00 zone is a critical resistance level. $VIRTUAL needs to break through this range to confirm a sustained bullish trend. Investors should monitor support levels ($1.30 and deeper at $1.00) and resistance zones ($2.00, $3.00) closely.

It remains the top narrative in crypto right now, and Virtuals Protocol sits squarely at the intersection of DeFi and AI-driven on-chain agents. 

As one of the foremost AI-centric ecosystems, $VIRTUAL aims to capture the first wave of new capital flowing into this space. If these trends persist, we could very well see $VIRTUAL decisively break its all-time high and even test levels in the $4–$5 range in the coming weeks.

Conclusion

The price of $VIRTUAL is likely to trade between $2.40 and $3.50. Fundamental analysis indicates that Virtuals Protocol has a strong foundation, with healthy tokenomics, a team actively expanding the ecosystem, and a steadily growing user base driven by staking incentives and on-chain engagement.

Potential catalysts for further price recovery include successful Genesis Launch events that have delivered high returns to participants, as well as the possibility of listings on major centralized exchanges.

In the long term, $VIRTUAL could become a top token in the AI Agent narrative. This depends on attracting quality AI projects and sustaining strong ecosystem growth.

Read more: Top 10 AI Agent Tokens: The Strongest Narrative in the Web3 Market