AI DApps Are Challenging DeFi and Gaming for Web3 Dominance: DappRadar Report

Artificial Intelligence (AI) decentralized applications (DApps) are emerging as a serious contender in the Web3 ecosystem, according to DappRadar’s April industry report. Historically dominated by DeFi and Gaming, the DApp landscape is undergoing a shift as AI tools gain broader adoption and engagement.

As of April, DeFi and Gaming each maintained a 21% share of the DApp ecosystem by daily unique active wallets (dUAW), while AI DApps climbed to 16%, up from 11% in February. This rise marks a 26% increase in AI DApp activity, reaching 3.8 million dUAW, compared to 2.6 million dUAW two months prior.

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

“As user interest in artificial intelligence tools grows across industries, AI-powered DApps are steadily carving out their place in the decentralized ecosystem,” said Sara Gherghelas, analyst at DappRadar. “If this trend continues, AI could soon challenge the traditional dominance of DeFi and Gaming, signaling a new era in the DApp landscape.”

AI Leaders: LOL, Dmail, and World.‎‎‎Fun

The top-performing AI DApps in April remain consistent, with many focused on AI agent infrastructure and utility-driven applications:

• LOL tops the list — an AI-powered mining system where users submit laughter recordings in Telegram groups, and are rewarded with LOL tokens based on pitch and frequency analysis.

• Dmail Network, a decentralized AI-driven messaging service, secured the second spot.

• World.‎‎‎Fun, a platform enabling users to deploy AI agents into multi-agent simulations, rounded out the top three.

“These projects are not just riding the hype: they’re building real utility,” Gherghelas noted.

Source: DappRadar

Social DApps Also Gain Ground

While AI is on the rise, Social DApps also saw notable growth in April, recording an 18% increase to 3.6 million dUAW and boosting their market share to over 15%.

Despite market turbulence, including geopolitical uncertainty and US tariff impacts, the Web3 sector remains resilient. DappRadar recorded 23 million daily active wallets in April, a slight dip from 24 million in February, suggesting steady user engagement across sectors.

“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 added.

What’s Next for AI in Web3?

As AI DApps continue to scale, crypto industry leaders have predicted that AI agents will play a transformative role in Web3 throughout 2025, particularly in areas like staking, automated trading, and decentralized governance.

However, the path forward may not be without challenges. Experts have flagged potential technical limitations, regulatory scrutiny, and the risk of centralization as key headwinds to AI’s continued rise in decentralized ecosystems.

Still, if current growth trajectories hold, AI DApps may soon take a front seat in the Web3 revolution — reshaping how users interact, transact, and build in decentralized environments.