This is the 178th most frequent Icelandic word.
virðist
"Virðist" means "seems" or "appears."
In this context, 'virðist' is used to indicate that something appears to be true based on observed evidence.
Hann virðist vera hamingjusamur í dag.
He seems to be happy today.
Here, 'virðist' introduces a subordinate clause, expressing an assumption or impression about a situation.
Það virðist sem hún hafi fundið lykilinn sinn.
It seems that she found her key.
In this example, 'virðast' (plural form) is used to express that based on observable information, the group likely had a good time.