Artificial Intelligence-powered decentralized applications (DApps) are rapidly gaining ground in the Web3 ecosystem. They may soon challenge the dominance of Gaming and Decentralized Finance (DeFi), according to fresh insights from blockchain analytics firm DappRadar.
DappRadar’s April industry report reveals that AI DApps accounted for 16% of total DApp activity, measured by unique active wallets — a notable rise from 11% in February. Although Gaming and DeFi still lead with a 21% share each, AI’s upward momentum signals a potential reshuffle in the top ranks of decentralized applications.
“AI-powered DApps are steadily carving out their place in the decentralized ecosystem,”
said DappRadar analyst Sara Gherghelas.
“If this trend continues, AI could soon challenge the traditional dominance of DeFi and Gaming, signaling a new era in the DApp landscape.”
The data shows a 26% increase in AI DApp user activity in April, reaching 3.8 million daily unique active wallets (dUAW), up from 2.6 million in February. In contrast, the DeFi and Gaming sectors experienced declines — DeFi usage dropped 16% to 4.8 million dUAW, while Gaming fell by 10%, settling at 4.8 million.
In April, LOL emerged as a leading AI DApp, rewarding users with LOL tokens for laughter voice recordings analyzed by Telegram bots. Dmail Network followed as a decentralized AI-powered messaging service, while World.Fun serves as a launchpad for AI agents in simulations. Social DApps also saw an 18% rise in activity, achieving over 15% market dominance. Overall, Web3 activity remained stable at 23 million daily active wallets, down slightly from 24 million in February, largely due to the appeal of AI and memecoins.
According to a separate report by DappRadar, the first quarter of 2025 proved challenging for the Web3 space, with DeFi experiencing a sharp decline while AI and social dApps gained traction. The total value locked in DeFi dropped by 27%, reaching $156 billion.
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