- A report by DappRadar has revealed that AI-drive DApps drove web3 growth in Q3
- The general DApp industry experienced a 70% rise in usage in Q3 compared to Q2
- Activities in the DeFi world however recorded a drop of 5%
A report by DappRadar indicates that AI-driven DApps contributed to the web3 industry’s 70% growth in usage in Q3 compared to Q2. The rise in web3 usage saw daily unique active wallets (UAWs) register an all-time high (ATH) of 17.2 million, with the growth recorded across all sectors. AI-focused DApps saw similar growth at 71% to reach 4.3 million UAWs compared to Q2, something that’s likely to continue as more blockchain developers explore the intersection between AI and the web3.
Web3 Community Wants Data-Driven Decision-Making
According to DappRadar’s “State of the Dapp Industry Q3 2024” report, AI-driven DApps like Alaya and DIN (Data Intelligence Network) AI were among the DApps that recorded the highest growth. In its September report, DappRadar disclosed that AI DApps accounted for 28% of the industry’s activity.
The report noted that the rise in usage of AI DApps indicates that the web3 community is shifting towards “automation and data-driven decision-making,” adding that the trend is also being fueled by the “need for more intelligent, scalable, and user-friendly technologies.”
DappRadar revealed that gaming dominates the web3 space although its market share has dropped. The social sector is among the few sectors that have maintained their activity levels when compared to Q2.
Ethereum Still Commands the DeFi World
Activities in the DeFi space have fallen causing the total value locked in DeFi platforms to decline to $160 billion in Q3 from $168 billion in Q2. According to DappRadar, most of the DeFi activity still happens on the Ethereum blockchain followed by Solana, Tron, and BNB Chain.
The NFT space has also seen a drop in sales volume which recently fell to lows last seen in 2021. Another report early this year indicated that web3 apps’ usage increased by more than 120% in 2023.
With the rise of AI-driven DApps, it’s to be seen whether the industry will strike a balance between AI and non-AI DApps.
