Gaming and DeFi dominated the DApp market in January, but AI-powered applications recorded 2.2 million active wallets, signaling rapid growth in Web3 AI adoption.
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Gaming and decentralized finance (DeFi) remained dominant in the decentralized applications (DApp) sector in January, while artificial intelligence applications gained traction, according to a Feb. 6 report from DappRadar.
DappRadar revealed that the daily average number of unique active wallets (UAW) in January reached 26.7 million. While this represented a 6% decline from December, DeFi applications expanded their market share, maintaining their position as the leading category in the DApp industry.
DeFi accounted for 28.1% of all active wallets, 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.
AI DApps record 2.2 million unique active wallets in January
January’s figures put AI DApps above the SocialFi category, which only had 6.3% of UAWs.
“Even though the impact and importance of AI in the DApp space has yet to be crystalized, we believe this category is poised to grow further,” DappRadar said.
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.
Related: US senator introduces bill that could criminalize downloading DeepSeek AI
AI gets traction in the Web3 space
On Feb. 4, researchers from Switzerland-based crypto bank Sygnum Bank said crypto AI agents had become one of 2025’s emerging trends. The researchers said interest in AI-related crypto projects has “grown substantially.”
Still, while AI agents gained traction, researchers said they struggled to “prove their worth,” and the niche remains highly speculative.
Despite this, Web3 continues to intersect with AI. On Feb. 6, stablecoin issuer Tether announced it’s venturing into AI applications. Tether CEO Paolo Ardoino said on X that Tether’s AI division is developing an AI translator, voice assistant and Bitcoin wallet assistant.
This article first appeared at Cointelegraph.com News