DApp Market Report: AI Applications Rise Strongly, RWA and Gaming Drive New Developments in NFTs

In the second quarter of 2025, the DApp market is showing new development trends. AI agent applications are growing rapidly, the value of NFTs is shifting from ostentation to practicality, and DeFi is seeking a balance between rising TVL and reduced financing. These changes reflect the shift in user demand and the reshaping of the industry landscape.

The average number of daily active wallets for DApps this quarter was 24.3 million, showing a slight decrease of 2.5% month-on-month, but still a significant increase of 247% compared to the beginning of 2024. This indicates that the ecosystem has become more stable, with users continuously active across various application areas.

It is worth noting that AI and social DApps have seen significant growth, while the activity of DeFi and GameFi has declined. The InfoFi concept has emerged, with platforms like Kaito and Cookie DAO performing well. In the AI sector, agent-based DApps are developing rapidly, with Virtuals Protocol standing out.

The total locked value in DeFi reached $200 billion, a month-on-month increase of 28%. This is mainly attributed to the 36% increase in Ethereum. However, DeFi financing dropped significantly by 50%, with only $483 million raised in the second quarter. The total DeFi financing in the first half of the year amounted to $1.4 billion, indicating a more rational allocation of funds.

The NFT market is exhibiting a unique trend: transaction volume has decreased by 45% to $867 million, but sales volume has surged by 78% to 14.9 million transactions. This reflects a decline in the average price of NFTs, but market enthusiasm remains undiminished. The number of traders has increased by 20%, indicating that users are gradually returning to the NFT space.

RWA NFT trading volume increased by 29%, rising to second place. The Courtyard platform has become the second largest NFT market of the quarter. Game NFTs also made a breakthrough, with the Guild of Guardians series surpassing BAYC and CryptoPunks for the first time, ranking first in trading volume.

Security issues remain a pain point in the industry. In the second quarter, losses due to hacking amounted to $6.3 billion, an increase of 215% compared to the previous quarter. Among these, the Mantra incident resulted in a loss of $5.5 billion, becoming the most severe single incident since the FTX collapse. This highlights the significant improvements needed in the industry regarding security.

Overall, the DApp ecosystem in the second quarter of 2025 is showing signs of integration and transformation. AI and social applications are on the rise, NFTs are shifting towards practical value, and DeFi maintains its core position. In the future, DApps need to seek a balance between attractiveness, security, and value creation to promote the sustainable and healthy development of the industry.