DappRadar reports a sharp rise in user activity for AI powered DApps, positioning them as emerging challenges to (DeFi) in the Web3 space.
Blockchain analytics platform DappRadar reported a sharp rise in user activity on May 09, 2025, especially for its artificial intelligence (AI) powered decentralized applications (DApps), showcasing them as a challenger to the long-standing dominance of gaming and decentralized finance (DeFi) in the Web3 space.
According to DappRadar’s April industry report, both gaming and DeFi sectors held a 21% share of unique active wallets, while AI DApps climbed to 16%, a notable increase from 11% in February. The surge suggests AI applications could soon rival the top players in the decentralized ecosystem.
Source: DappRadar
DappRadar analyst Sara Gherghelas said, “As user interest in artificial intelligence tools grows across industries, AI-powered DApps are steadily carving out their place in the decentralized ecosystem”.
“If this trend continues, AI could soon challenge the traditional dominance of DeFi and Gaming, signaling a new era in the DApp landscape.”
AI DApps experienced a 26% increase in daily unique active wallets (dUAW) in April, reaching 3.8 million, up from 2.6 million in February.
Meanwhile, both DeFi and gaming sectors saw declines in user activity down 16% and 10% respectively, with each settling at 4.8 million dUAW.
Topping the list of AI DApps is LOL, a project that brands itself as an AI-driven mining system. The application rewards users with LOL tokens based on the pitch and frequency of laughter in voice recordings submitted to Telegram groups equipped with the LOL AI bot.