The decentralized application (DApp) industry is substantially transforming as AI-based DApps assume the lead in the Web3 ecosystem, overtaking gaming.
AI DApps currently dominate the market, accounting for an impressive 28% of daily activity, as per DappRadar’s DApp Industry Report for July 2024.
AI DApps Overtake Gaming Industry
For the first time in over a year, blockchain-based games have relinquished their position as the leading sector in the DApp industry despite their long-standing criticism for their subpar gameplay.
In July, the “Other” category surpassed the gaming sector, which had previously held a 26% share, although gaming remains an essential component of Web3. This other category primarily includes AI-based DApps, such as DIN and Alaya AI, notable platforms.
Decentralized gaming applications utilize blockchain technology to provide a distinctive gaming experience. DApps, in contrast to conventional games, offer users the actual ownership of their in-game assets.
The blockchain represents these assets, including currencies, commodities, and characters, as non-fungible tokens (NFTs), which enable players to trade, sell, or transfer them outside the game’s ecosystem.
DApp Industry Sees Growth
In the meantime, the Daily Unique Active Wallets (dUAW) in the DApp industry have increased by 78% from the previous month to a record-breaking 15.9 million.
This increase indicates the popularity and implementation of decentralized applications in various industries.
AI DApps are transforming the Web3 industry by offering innovative solutions that utilize artificial intelligence to improve user experiences and introduce new functionalities.
A broad spectrum of applications includes AI-driven financial tools, sophisticated prediction markets, and autonomous agents interacting within the blockchain ecosystem.
In recent months, the social sector has experienced significant growth and has become increasingly prominent, comprising 20% of the DApp industry.
It is presently experiencing 3.1 million unique active wallets daily. Social decentralized applications (DApps) are becoming more significant in the Web3 ecosystem by offering decentralized social networking platforms that prioritize user privacy and data proprietorship.
The development of daily active wallets indicates an increasing engagement level with decentralized applications. Greater recognition of the potential benefits of blockchain technology, such as enhanced security, transparency, and the ability to operate without intermediaries, may influence this trend.
