AI Apps Challenging Gaming and DeFi Dominance

AI Apps Challenging Gaming and DeFi Dominance
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  • AI apps are challenging the growth of gaming and DeFi, according to DappRadar
  • AI-based crypto dApps recorded over 4.5 million daily unique active users in May
  • DappRadar observed that AI-powered apps are slowly “establishing themselves within the decentralized ecosystem”

AI-powered crypto apps are slowly “establishing themselves within the decentralized ecosystem,” choking the growth of gaming and DeFi. According to a report by blockchain analytics platform DappRadar, AI-based apps registered over 4.5 million daily active users in May and dominated 18.8% of the dApp ecosystem, compared to DeFi and games, which held 19.3% and 19.4%, respectively. The report also noted that AI’s impact on web3 “is only becoming more pronounced” as it continues to dominate global conversations, a sign that AI-powered DeFi, web3, and gaming apps may replace non-AI apps.

A Trend, Not a Hype

DappRadar noted that AI’s continued rise in the crypto space “isn’t just [a] hype, but it’s a trend,” which it said reflects a wider shift towards open and “user-owned technologies.” The top AI dApps include LOL, SubHub, Dmail Network, XPIN Network, and Cudis.

According to the report, the growth of AI-based dApps remained largely consistent over time, adding that there’s a significant interaction between AI and blockchain through the rise of AI agents.

The public is also warming up to decentralized AI. Referencing a report commissioned by Digital Currency Group, DappRadar noted that more than 75% of Americans believe that decentralized AI “would be more beneficial to society than centralized models.”

The blockchain analytics platform observed that AI’s usage and public sentiments are rivaling gaming and DeFi in user activity. DappRadar noted that the adoption of AI within the crypto space signals a new phase defined by balance, infrastructure, and “long-term resilience.”

Web3 Users Want Innovation, DeFi Projects Embrace AI

According to DappRadar, the rise of AI dApps shows that crypto and web3 users are embracing functionality, real value, and innovation. DappRadar’s report comes as blockchain-based projects like Ethereum scaling network Starknet are using AI to enhance DeFi and other activities on the network.

Others like Tether and PancakeSwap have also announced AI plans. AI-centric platform Fetch.ai also recently announced the “world’s first web3 LLM [large language model]” to handle complex web3 workflows.

With AI dApps slowly diluting DeFi’s dominance, it’s likely AI will rule the DeFi, web3, and gaming sectors in the near future.

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