AI decentralized apps are coming for the Web3 throne: DappRadar

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AI decentralized apps (DApps) have seen a spike in user activity and could soon challenge gaming and DeFi for the top spot in the DApp ecosystem, according to blockchain analytics platform DappRadar.

Gaming and DeFi are both sitting on 21% dominance in April, judged by percentage of unique active wallets, while AI has climbed to 16%, up from the 11% recorded in the February report, data in DappRadar’s April industry report shows.

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

“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 have seen a jump in market dominance this month, while market leaders have declined slightly. Source: DappRadar

AI DApp activity surged over 26% in April to reach 3.8 million daily unique active wallets (dUAW), up from the 2.6 million dUAW recorded in February.

In contrast, DeFi activity dropped by 16%, settling at 4.8 million dUAW, which is equal to the gaming sector, which saw a 10% decline as well.

Source: DappRadar

Gherghelas said most of the top AI DApps being tracked by DappRadar have remained the same, with many tied to AI agent infrastructure and those building utility.

LOL, a project that styles itself as an AI-powered mining system, is the top AI DApp on DappRadar’s list in dUAW.

LOL encourages users to send a voice recording of laughter to Telegram groups that use the LOL AI bot, which then uses factors like pitch and frequency to calculate the number of LOL tokens paid out in rewards.

Coming in second is AI-powered decentralized messaging service Dmail Network. Rounding out the top three is World.‎‎‎Fun, a launchpad that allows users to deploy AI agents into multi-agent simulations.

“This month, the top AI DApps on our platform remain largely unchanged, reinforcing the staying power of early leaders in this space. These projects are not just riding the hype: they’re building utility,” Gherghelas added.

Last December, crypto industry execs told Cointelegraph they expected AI agents to transform Web3 in 2025, flagging crypto staking and onchain trading as emerging early use cases. 

However, there was also speculation that AI would face headwinds, including technical challenges, regulatory hurdles, and centralization. 

Social DApps rise as Web3 holds ground

Social DApps also saw a spike in activity for April, with an 18% increase to 3.6 million dUAW. Social DApp market dominance also grew to over 15% for the month.

Related: Crypto users cool with AI dabbling with their portfolios: Survey

Gherghelas said overall that “Web3 is holding its ground,” despite wider market turbulence in the wake of sweeping US tariffs, with 23 million daily active wallets recorded in April, compared to the 24 million recorded 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,” she said. 

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