AI Asserts Its Position in Web3, Challenging DeFi and Blockchain Gaming

Artificial intelligence (AI) is increasingly establishing its presence in the Web3 ecosystem as AI-powered decentralized applications (DApps) attract more users. According to DappRadar’s May report, these apps recorded 4.8 million daily active wallets—a 23% increase from the previous month—highlighting a steady upward trend.

DappRadar analyst Sara Gherghelas noted that AI DApps are challenging the dominance of DeFi (decentralized finance) and blockchain games, which have traditionally led Web3 in both value locked and user base. She emphasized that AI’s momentum isn’t just hype but reflects a broader societal shift toward open, user-driven technologies.

Notably, the leading AI DApps have remained consistent. Topping the list is LOL, with 2 million daily active wallets. The platform uses an AI bot to analyze users’ laughter and rewards them with tokens based on their “happiness level.”

Ai Dapps Have Seen An Increase In Market Dominance This Month

One standout newcomer in May was SubHub, a Web3 notification and marketing platform developed by Dmail. Integrating AI to send smart messages and target users based on wallet data, SubHub attracted 82,000 daily active wallets. DappRadar remarked that this highlights a growing trend of convergence between social and AI technologies in the DApp space.

Major players are also entering the AI arena. ThinkAgents.ai recently introduced an open-source protocol for deploying autonomous agents across decentralized networks. Meanwhile, Tether, the largest stablecoin issuer, announced plans for a decentralized AI platform that combines peer-to-peer communication with crypto transactions.

DappRadar also cited a May survey by Harris Poll showing that 77% of Americans believe decentralized AI would be more beneficial than centralized models. Additionally, 56% prefer AI development to occur through decentralized systems.

Gherghelas concluded that these findings reflect a cultural shift aligned with Web3’s core principles of transparency, user ownership, and resistance to monopolies.

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