Key Takeaways

• AI-powered DApps reached 4.8 million daily users in May 2025, marking a 23% growth from previous months. 
• Platforms like LOL and SubHub are leading the charge, offering innovative applications for AI in Web3. 
• The trend indicates a long-term paradigm shift towards user-owned, decentralized AI systems. 
• Major players like Tether and ThinkAgents.ai are developing foundational protocols for decentralized AI. 
• Consumer sentiment strongly supports decentralized models, with a significant majority favoring them over centralized AI.

AI DApps Rival Gaming & DeFi For Dominance

For several years now, DeFi platforms and blockchain-based gaming applications have dominated the DApp landscape in terms of user activity and total value locked (TVL). However, the new wave of AI-driven applications appears to be shifting the balance.

AI DApps’ Increase In Market Dominance

Source: DappRadar

This surge in AI DApp usage isn’t just fueled by hype. Instead, it reflects a “broader societal shift toward open, user-owned technologies.” As more users gravitate toward systems that prioritize transparency and decentralization, AI-backed platforms are rising to meet the demand.

Consistency Among Top AI DApps

One of the most compelling takeaways from the report is the staying power of early market leaders in the AI DApp category. The top-performing platforms remained largely consistent throughout May, showcasing both user loyalty and functional reliability.

At the forefront is LOL, a platform that uses AI to analyze users’ laughter and reward them with tokens based on how happy they appear. LOL recorded 2 million daily active wallets in May, making it the most popular AI DApp for the entire month.

Details About LOL

Source: DappRadar

Notable Newcomer: SubHub

While legacy platforms held their ground, new players have also been steadily making themselves known. SubHub, an AI-enhanced Web3 notification and marketing tool developed by Dmail, emerged as the most notable new entrant. It registered 82,000 daily unique active wallets in May.

SubHub combines smart messaging and wallet-based targeting to offer fuly tailored communication across the Web3 space. This approach further supports the growing narrative that social media DApps and AI are indeed becoming increasingly intertwined.

Industry-Wide AI Momentum

The report also spotlighted broader industry movements that indicate growing momentum behind decentralized AI technologies:

• ThinkAgents.ai introduced an open-source protocol, the Think Agent Standard, designed to deploy autonomous agents on decentralized networks. 
• Tether, one of the largest stablecoin issuers, announced its entry into the AI arena. The company aims to develop a decentralized AI platform that merges peer-to-peer communication with crypto transactions. 

These initiatives point to a future where AI is deeply integrated into the core infrastructure of Web3 ecosystems, from financial tools to communication platforms.

Public Sentiment Favors Decentralized AI

Supporting this technological shift is a clear cultural preference for decentralization. A poll recently conducted in May, cited in the DappRadar report, found that:

• 77% of Americans believe decentralized AI would be more beneficial than centralized models.
• 56% would prefer AI development to occur within decentralized frameworks.

77% Of The Total Respondents Say That Decentralized AI Is Indeed Beneficial To Both Them & Society

Source: DCG

FAQ

How do AI DApps compare with DeFi and gaming platforms?
While DeFi and gaming have historically dominated in terms of usage and value locked, AI DApps are quickly gaining ground by offering new use cases and deeper user engagement.

Is decentralized AI better than centralized AI?
According to recent polling, a significant majority of Americans believe decentralized AI provides better benefits due to increased transparency, user ownership, and reduced risks of monopolistic control.

What companies are investing in decentralized AI?
Organizations like Tether and ThinkAgents.ai are developing decentralized AI frameworks that blend blockchain, peer-to-peer communication, and autonomous agent deployment.