AI DApps Surge: Gaming and DeFi Lead, AI Emerges as Major Growth Sector

In the dynamic world of decentralized applications (DApps), gaming and decentralized finance (DeFi) continued to lead the sector in January, while artificial intelligence (AI) applications began to gain significant traction, as reported by DappRadar in a recent analysis.

DappRadar's report revealed that the daily average number of unique active wallets (UAW) in January reached 26.7 million, marking a 6% decline from December. Despite this slight decrease, DeFi applications expanded their market share, solidifying their position as the dominant category in the DApp industry. DeFi accounted for 28.1% of all active wallets, closely followed by gaming applications at 27.8%. Non-fungible token (NFT) DApps captured 16.1%, while SocialFi applications held a 6.3% share.

AI-powered DApps recorded 2.2 million unique active wallets, representing 8.5% of the total DApp market. DappRadar described AI as a "major growth sector" and a potential catalyst for the next bull market in Web3. January's figures put AI DApps above the SocialFi category, which only had 6.3% of UAWs. DappRadar believes that the impact and importance of AI in the DApp space are poised to grow further, despite the niche remaining highly speculative.

In the AI category, a DApp called "LOL" led the pack, recording 28.6 million unique active wallets in January. Dmail Network followed with 4.9 million, while the virtual influencer platform MEET48 had 2.8 million. Researchers from Switzerland-based crypto bank Sygnum Bank also noted the growing interest in AI-related crypto projects, highlighting the intersection of Web3 and AI.

On Feb. 6, stablecoin issuer Tether announced that its AI division is developing an AI translator, voice assistant, and Bitcoin wallet assistant. This further underscores the increasing integration of AI in the Web3 space and its potential to drive innovation and growth in the DApp sector.