Analyst Note: Agent Update

Introduction

The agent meta took the market by storm late last year. But as often happens once overall risk appetite contracts, the meta that was last quarter’s darling often suffers even greater drawdowns as it is one of the few sources of unrealized PnL to take from. The hope of network effects being achieved around different frameworks and launchpads did not quite materialize. As with memes, the agent space was diluted by low-quality, copy-paste launches that fragmented liquidity further. This note is not a prediction of any imminent comeback, but rather an update on what builders are still working on in less euphoric conditions.

Virtuals

• Virtuals Protocol expanded to Solana a week ago.
• Agent token creation and protocol revenue have grinded down significantly in the past two months.