Boom in AI dApps Challenges Blockchain Gaming and DeFi Dominance
Decline in blockchain gaming usage observed in 2025, with a decreasing number of daily users noted
In a surprising turn of events, AI-based dApps saw a remarkable surge of 26% in April 2025, amassing a whopping 3.8 million daily users. This jump was the most significant across all decentralized application categories, indicating a notable increase in user activity for AI applications within the Web3 sphere [4].
This growth comes at a time when the traditional dominance of blockchain gaming and DeFi (Decentralized Finance) within the dApp world is being put to the test. AI dApps are steadily gaining traction due to their innovative applications and practical utility [1][4].
Critical Developments in the dApp Ecosystem
- AI Tokens: These digital assets are the driving force behind the synergy of AI and blockchain, enhancing decentralized applications in manifold ways. For example, AI tokens facilitate secure DeFi investment management via tools like Newton, and they contribute to game environments with projects like Pixel AI on the Solana blockchain [1].
- Blockchain Gaming: With games like Pixel AI, AI is being harnessed to revolutionize gameplay and offer rewards for digital competitions. This incorporation of AI in gaming may potentially disrupt traditional gaming models [1].
- DeFi and AI: AI is being deployed to improve trading strategies and asset management within DeFi. AI-enhanced tools are currently offering automated and sophisticated investment options, which could further challenge DeFi's dominance should the growth in AI dApps continue [1][4].
Key Implications:
- Shaking the Foundations: The increasing popularity of AI dApps signals a shift in user preferences towards more functional applications, which poses a potential threat to the long-standing dominance of gaming and finance within the Web3 community.
- Innovation and Practicality: AI dApps are pushing the boundaries of what's possible with blockchain technology, potentially leading to a broader embrace of Web3 platforms beyond just gaming and finance.
- Evolving Market Dynamics: The growth of AI dApps could influence market trends, leading to a more diverse investment landscape and a more comprehensive Web3 ecosystem [1].
Even with a dip in user activity, large-name gaming corporations are still dipping their toes in blockchain waters. The outcome has been mixed - Sega released an NFT game called KAI: Battle of Three Kingdoms, but Square Enix withdrew from Symbiogenesis after it failed. Despite setbacks, Ubisoft remains committed, joining forces with Immutable for a Might & Magic blockchain card game set to debut later this year [3].
In the eyes of Gherghelas, major publishers are maintaining their interest, but the ones making headway are the ones allying with web3 native teams. She also stresses the evolving landscape - the focus is gradually shifting towards robust gameplay, interoperability, and "genuine user retention" rather than token hype [2].
- The surge in AI-based dApps has sparked a competition with the traditional dominance of blockchain gaming and DeFi in the dApp world.
- AI tokens are playing a crucial role in enhancing the synergy of AI and blockchain, providing features like secure DeFi investment management and contributing to gaming environments.
- AI is being utilized to revolutionize blockchain gaming, offering innovative gameplay and rewards for digital competitions, which could potentially disrupt traditional gaming models.
- In DeFi, AI is being deployed to enhance trading strategies and asset management, offering automated and sophisticated investment options that could challenge DeFi's dominance.
- Gherghelas believes that major publishers are maintaining interest in blockchain, but the ones making progress are those that partner with web3 native teams, emphasizing the need for robust gameplay, interoperability, and user retention rather than token hype.
- Binance wallets are being used for storing crypto assets, while smartphone gadgets such as the latest smartphones enable users to access and interact with decentralized applications like dApps, NFTs, and DeFi platforms with ease.
