Virtuals Protocol (VIRTUAL) Drops 6.85% Amid Hacked Wallet Selling

The Impact of Hacked Wallet Selling on Virtuals Protocol (VIRTUAL)

The drop in Virtuals Protocol (VIRTUAL) over the last ~42 hours aligns with a hacked wallet starting to dump VIRTUAL into a risk-off market.

Hacker Related VIRTUAL Selling

On 4 Nov 2026, on-chain monitor Onchain Lens flagged a wallet as belonging to the Mercado Bitcoin hacker, holding 1.92 million VIRTUAL worth about $1.14 million. TokenPost report That wallet moved the 1.92 million VIRTUAL to a new address, then began selling in batches of roughly 30,000 to 40,000 VIRTUAL per transaction via MetaMask, each tranche valued around $17,000 to $45,000. same source The report notes that not all 1.92 million tokens were confirmed sold, but it explicitly describes “successive lots” being offered into the market, which is exactly the pattern that tends to pressure price in the short run. Even if the hacker does not dump the full 1.92 million immediately, the market must absorb a visible stream of sell orders from a single concentrated source, which typically weighs on price.

Size Of The Dump Versus VIRTUAL’s Liquidity

To gauge impact, you need to compare the hack-related selling to VIRTUAL’s size and liquidity. Circulating supply is about 659.05 million VIRTUAL, with a market cap near $365.24 million and a fully diluted market cap around $554.19 million. Reported 24 hour trading volume is about $62.13 million. VIRTUAL is already under pressure on longer horizons, down about 8.29% over 24 hours, 11.58% over 7 days, and 33.58% over 30 days, and trading roughly 89.07% below its all-time high in percentage terms. The 1.92 million VIRTUAL corresponds to about 0.29% of the circulating supply. At the reported value of roughly $1.14 million, that is about 1.83% of the current 24 hour dollar volume. Crucially, this is not a one-time block trade. It is a series of repeated market sales in the 30,000 to 40,000 VIRTUAL range. Relative to the live order book on individual venues, that can be a large fraction of available bids at any given moment. The hacked wallet’s selling is big enough to matter on the tape even if it is small relative to total supply. It adds one more motivated seller to a market that was not seeing proportionate fresh buying.

Broad Crypto Risk Off Backdrop

The token-specific selling did not occur in isolation. It coincided with a sharp risk-off swing across crypto. Total crypto market cap fell about 5.37% in the last 24 hours and roughly 7.02% over the past week, to around $2.54 trillion. BTC dominance stayed near 60%, and the Fear and Greed Index has slid into Fear territory around the low 30s, indicating a cautious market. Multiple reports document a $6.3 billion Binance security breach that triggered around $1.55 billion in leveraged liquidations, pushing Bitcoin below $77,000 and dragging major altcoins down with it. Binance hack and liquidations Other analyses attribute the broader selloff to a combination of the Binance hack, heavy outflows from US Bitcoin ETFs over two consecutive days, and uncertainty around US midterm elections and tech-stock weakness, all contributing to lower risk appetite and a stronger correlation between crypto and traditional risk assets. macro and midterms overview Over the same window, articles highlight Bitcoin slipping below key support bands, altcoin declines outpacing BTC on average, and a shift from previous “Greed” to sustained “Fear” in sentiment indices, all of which typically make it harder for mid-cap tokens like VIRTUAL to find dip buyers. The hacked-wallet supply likely accelerated a move that the market was already biased toward. VIRTUAL is trading in a sector that is currently de-risking after a major exchange hack and macro jitters, so downside follow through is much easier than it would be in a risk-on phase.

Conclusion

The 6.85 percentage point move in VIRTUAL over the last ~42 hours is best explained by a very clear direct catalyst, the Mercado Bitcoin hacker moving and selling a roughly $1.14 million VIRTUAL stash, hitting the market in many small orders, on top of a broader crypto risk-off phase driven by the Binance hack, ETF outflows, and macro and election uncertainty. There is no sign of a fundamental failure or protocol-specific news from Virtuals Protocol itself in this period, which reinforces the view that the move is mostly supply and macro pressure rather than a change in project quality. Confidence: High – there is direct, time-aligned reporting of VIRTUAL-specific hacked-wallet selling plus well-documented market-wide weakness during the same window. As of 5 Nov 2026 using CMC live price, CMC market overview, and news articles.