Artificial intelligence (AI)-powered decentralized applications (DApps) are rapidly emerging as a formidable force in the Web3 ecosystem, challenging the longstanding dominance of gaming and decentralized finance (DeFi) sectors. According to DappRadar’s April 2025 industry report, AI DApps now account for 16% of the market share, up from 11% in February, indicating a significant surge in user engagement and interest.
This growth is reflected in the daily unique active wallets (dUAWs), which have risen by over 26% to reach 3.8 million, surpassing the combined activity of DeFi and gaming sectors, each at 4.8 million dUAWs. Notably, the top-performing AI DApps include LOL, an AI-powered mining system that rewards users for sending voice recordings of laughter; Dmail Network, a decentralized messaging service; and World.Fun, a platform enabling the deployment of AI agents into large-scale simulations.
This shift towards AI DApps is part of a broader trend where the “Other” category, primarily comprising AI-based applications, has overtaken gaming to become the leading sector in DApp activity. As of July 2024, it has 28% of the market share. Analyst Sara Gherghelas notes that these AI DApps are not merely capitalizing on hype but are building tangible utility, signaling a new era in the DApp landscape.
Source: DappRadar
The rise of AI DApps is also influencing other sectors within Web3. Social DApps, for instance, have experienced an 18% increase in activity, reaching 3.6 million dUAWs and capturing over 15% of the market share. This indicates a growing interest in decentralized platforms that prioritize user privacy and data ownership.
AI and Social dapps on the rise 📈
In April, Web3 held steady at 23M daily wallets, but shifts within sectors are clear.
AI dapps jumped 26% to 3.8M wallets, while Social gained 18% – now challenging the dominance of Gaming and DeFi, both down and tied at 21%.
Is AI about to… pic.twitter.com/IYP4rwUabW
