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

Artificial intelligence is steadily asserting its key role in the Web3 ecosystem, attracting a growing number of users and posing increasing competition to traditional DeFi and blockchain gaming sectors.

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.”