VIRTUAL bulls step in as users retreat – But THESE risks shadow 11% rally

Key Summary

Virtuals Protocol surged 11% on October 5, driven by bullish positioning in its perpetual Futures market, where $49.24 million in capital inflows were recorded. A positive Netflow of $2.3 million indicated more capital entered than exited, while a 0.0056% Funding Rate suggested longs were paying shorts, supporting the bullish setup. Open Interest increased by 25% to $133.26 million, and staking activity also gained ground, with the dollar value of staked capital reaching $18.79 million. Despite this, concerns remain about the sustainability of the rally due to falling protocol activity and increased leverage.