AI DApps reach 16% dominance

Artificial intelligence decentralised applications (DApps) are gaining traction in the Web3 ecosystem and may soon challenge gaming and decentralised finance (DeFi) for user dominance, according to blockchain analytics platform DappRadar.

In April 2025, gaming and DeFi each held 21% market dominance based on unique active wallets, while AI DApps increased their share to 16%, up from 11% in February, DappRadar’s industry report shows.

“As user interest in artificial intelligence tools grows across industries, AI-powered DApps are steadily carving out their place in the decentralised ecosystem,” DappRadar analyst Sara Gherghelas noted.

“If this trend continues, AI could soon challenge the traditional dominance of DeFi and Gaming, signaling a new era in the DApp landscape,” she added.

AI DApp activity surged over 26% in April, reaching 3.8 million daily unique active wallets (dUAW), compared to 2.6 million in February.

Meanwhile, DeFi activity dropped 16% to 4.8 million dUAW, matching the gaming sector, which also declined by 10%.

Among the top AI DApps tracked by DappRadar, the project LOL leads in daily active wallets. LOL uses AI to reward users with tokens based on voice recordings of laughter submitted via Telegram groups.

The AI-powered decentralised messaging service Dmail Network ranks second, followed by World.Fun, a launchpad for deploying AI agents in multi-agent simulations.

Gherghelas emphasised that “these projects are not just riding the hype: they’re building utility,” reflecting the sustained presence of early AI DApp leaders.

Social DApps also saw an 18% increase in activity in April, reaching 3.6 million dUAW and growing their market share to over 15%.

Despite broader market turbulence, Web3 maintained steady user engagement with 23 million daily active wallets in April, slightly down from 24 million in February.

“April’s top performers underscore a key narrative: utility and narrative-driven hype, especially around memecoins and AI, are major drivers of user engagement,” Gherghelas concluded.