AI Looks To Challenge DeFi’s Web3 Dominance

AI DApps Gaining Momentum

As of April 2025, both the gaming and DeFi sectors hold a steady 21% share in the dApp ecosystem, based on unique active wallets. In comparison, AI dApps have surged to 16%, marking a significant increase from the 11% recorded in the previous report from February 2025, DappRadar’s April industry report reveals.

Source: X (@DappRadar)

With increasing demand for AI tools across multiple sectors, AI-driven dApps are steadily carving out a strong position in the decentralized space. DappRadar analyst Sara Gherghelas explained:

“As AI tools gain traction across industries, AI-powered dApps are steadily finding their place within the decentralized ecosystem.”

Explosive Growth

AI dApps have seen a remarkable jump in market activity. In April 2025, the daily unique active wallets (dUAW) of AI dApps skyrocketed by 26%, reaching a total of 3.8 million. This marks a significant increase from the 2.6 million dUAW reported in February 2025.

In contrast, the DeFi sector witnessed a decline of 16%, settling at 4.8 million dUAW. This figure matches the gaming sector, which also experienced a 10% drop in activity. These numbers suggest that the AI dApp sector is steadily gaining ground, while the traditional leaders of the dApp ecosystem show signs of stagnation.

The Top AI DApps on the Rise

Gherghelas highlighted that the leading AI dApps remain relatively unchanged, with many of them focusing on AI agent infrastructure and building real-world utility. Some of the most notable AI dApps include:

1. LOL – A standout in the AI dApp market, LOL is an AI-powered mining system that encourages users to submit voice recordings of laughter to Telegram groups. The LOL AI bot analyzes factors such as pitch and frequency to determine how many LOL tokens are distributed as rewards. This unique approach to AI-powered rewards has made it a top player in the dApp space.

2. Dmail Network – A decentralized messaging service, Dmail Network leverages AI to provide secure and private communications in the Web3 space. The service has quickly gained traction, securing its place as one of the top AI dApps.

3. World.‎‎‎Fun – This AI-powered launchpad allows users to deploy AI agents into multi-agent simulations. The platform has garnered attention due to its innovative use of AI in creating dynamic and interactive experiences.

Gherghelas noted:

“These early leaders in the AI dApp space are not merely riding the wave of hype; they are creating real utility. Their staying power suggests that the demand for AI-powered solutions is likely to continue to grow.”

 

Industry Expectations & Challenges

Back in December 2024, crypto industry executives shared their expectations for AI agents to become transformative forces in the Web3 landscape by 2025. AI applications in crypto staking and on-chain trading were highlighted as key areas to watch.

However, industry insiders also voiced concerns about the potential headwinds AI might face in Web3. These include technical challenges, regulatory hurdles, and the ongoing risk of centralization. Overcoming these obstacles will be critical to the success of AI dApps as they strive to redefine the decentralized ecosystem.

Source: DappRadar

Social dApps Also See Growth

In addition to AI dApps, social dApps also saw a surge in activity during April 2025. Social dApp activity increased by 18%, reaching 3.6 million dUAW. This growth pushed the market share of social dApps to over 15% for the month, signaling the rising interest in decentralized social platforms.

Despite the broader market turbulence, including the impact of sweeping U.S. tariffs, Gherghelas pointed out that Web3 has maintained its position:

“Web3 is holding its ground, even amidst a challenging market environment. April’s overall figure of 23 million daily active wallets is only slightly down from the 24 million recorded in February.”