Q2 2025 Dapp Market Report: Rise of AI Applications, RWA and Gaming Drive NFT Transformation

The Dapp market in the second quarter showed a diversified development trend. AI applications experienced strong growth, RWA and gaming assets led the transformation of the NFT market, while DeFi sought a balance between rising total locked value and decreased financing. Despite the overall positive market sentiment, frequent security incidents remain a concern for the industry's development.

1. The number of daily active independent wallets for Dapps remains stable at 24 million, with significant growth in the AI and social sectors.

The average number of daily active unique wallets for Dapps this quarter is 24.3 million, a slight decrease of 2.5% compared to the previous quarter. This figure represents a significant increase from the 5 million level during the same period last year, reflecting an overall growth in user engagement.

From a sector perspective, the activity levels of DeFi and GameFi have declined by 33% and 17%, respectively. Meanwhile, social and AI-related Dapps are showing a growth trend. In the social domain, InfoFi platforms represented by Kaito and Cookie DAO are performing well. In the AI field, growth is led by agent-based applications spearheaded by Virtuals Protocol.

From the perspective of market share, the AI and social sectors are gradually eating into the shares of DeFi and gaming. Notably, an AI application has topped the independent wallet rankings for the first time this quarter, highlighting the rapid rise of AI in the Dapp ecosystem.

However, we also noticed the phenomenon of "dormant Dapps", especially in the AI sector, where the number of inactive applications surged by 129%. This highlights the challenges projects face in maintaining long-term operations, particularly when funding support is insufficient.

2. The total locked value in DeFi reached 200 billion USD, but the financing amount has significantly decreased.

The total locked value in DeFi this quarter exceeded $200 billion, a quarter-on-quarter increase of 28%. This growth is mainly attributed to the overall rebound of the cryptocurrency market, with Bitcoin rising by 30% and Ethereum climbing by 36%.

The total value locked (TVL) in major public chains has generally increased, with the exception of Tron, which fell by 8%. Ethereum still holds the leading position with a market share of 62%, while Solana ranks second with a 10% share. Notably, Hyperliquid L1, which focuses on perpetual contracts and spot trading, saw its TVL soar by 547% this quarter.

However, the financing amount in the DeFi sector decreased by 50% quarter-on-quarter, amounting to only $483 million. The total financing amount for DeFi projects in the first two quarters of 2025 is approximately $1.4 billion. Although this is lower than the explosive growth levels of previous years, it still shows a sustained interest from capital in this field.

3. NFT trading volume surges but transaction value declines, RWA and gaming become new growth points

This quarter, NFT trading volume decreased by 45% to $867 million, but the number of transactions surged by 78% to 14.9 million, reflecting that NFTs are moving towards affordability. The number of traders grew by 20%, averaging 668,598 people per month, indicating that users are gradually returning to the NFT market.

From the perspective of the NFT category, the trading volume of personal avatar NFTs plummeted by 72%, while the trading volume of RWA NFTs increased by 29%, rising to the second position. The trading volume of art NFTs decreased by 51%, but the transaction volume surged by 400%, indicating a significant drop in art prices. Domain NFTs also showed signs of recovery, mainly benefiting from the promotion of the TON ecosystem.

In terms of trading platforms, OpenSea still holds the leading position, but the Courtyard platform has rapidly risen to second place, highlighting the rise of the RWA narrative in the NFT space. Notably, the game NFT collection Guild of Guardians has topped the quarterly trading volume for the first time, surpassing blue-chip projects like CryptoPunks and BAYC, confirming that RWA and gaming assets are becoming the main driving forces behind the NFT market.

4. Surge in security incident losses, with a single-quarter loss of $6.3 billion

In the second quarter of 2025, the Web3 sector suffered a loss of $6.3 billion due to security incidents, marking a 215% increase compared to the previous quarter, and setting one of the heaviest loss records since the collapse of FTX. Among them, 87% of the losses came from a single event—the Mantra crash, which resulted in a $5.5 billion evaporation of market value.

Other major security incidents include:

• Individual users suffered private key theft, resulting in a loss of $330.7 million.
• Cetus Protocol hack incident, loss of $260 million
• Nobitex exchange was attacked, resulting in a loss of 82 million dollars.
• UPCX protocol vulnerability incident, with losses of approximately 70 million USD.

These events highlight the serious security risks that still exist in the industry, emphasizing the urgent need to strengthen the construction of security infrastructure, auditing, and emergency response capabilities.

5. Conclusion

In the second quarter of 2025, the Dapp ecosystem is undergoing integration and transformation. AI and social applications are on the rise, the NFT market is shifting from speculation to practical value, and DeFi is seeking balance amid growth and challenges. Although user activity remains stable, frequent security incidents are still a major obstacle to the industry's development. In the future, creating Dapps that are both attractive and safe will be the core task of the industry.