The Virtuals Protocol (VIRTUAL) has become a popular token on CoinGecko due to its significant gains in both daily and monthly trading.

Nevertheless, there are concerns that the surge in value might be driven by whale control, weak fundamental factors, and exaggerated AI-related expectations.

The dominance of whale investors holding a large portion of VIRTUAL's total supply has raised alarm bells. Despite the token's remarkable price surge of nearly 300% in May and 46% within 24 hours, data reveals that the top 100 wallets control 93% of VIRTUAL.

Even though there is excitement surrounding VIRTUAL's AI-themed platform, its trading revenue doesn't correlate with the substantial price increase. The revenue generated from the protocol is relatively low compared to the token's surge, leading to doubts about its sustainability.

The speculation regarding the potential of Virtual Protocol's AI agent platform has influenced the spike in VIRTUAL's price. The launch of Virgin Points, a loyalty-based system enhancing user participation in early-stage token offerings, has been successful in creating fresh demand for the VIRTUAL token.

However, the dominance of a few large holders, coupled with modest revenue and substantial price spikes, raises concerns about the token's long-term value. The token's valuation might be more speculative than a reflection of genuine utility, especially considering the potential for profit-taking by major holders in the future.

As VIRTUAL follows the broader trend of altcoins rebounding and gains attention for its innovative AI concept, the market will have to scrutinize if the token's surge is based on genuine value or inflated expectations.