AI-based decentralized applications (DApps) have recently outshined the gaming sector, paving the way for future innovation.
Despite the recent crypto market downturn and broader economic issues, the web3 ecosystem has shown resilience. Significant growth and transformation have occurred, especially as AI-powered DApps take the forefront.
DappRadar’s July 2024 DApp Industry Report shows that AI DApps now dominate the market.
AI DApps Dominance Shifts Gaming Sector from Top Spot in Web3 Environment
According to the report, AI DApps account for 28% of the daily market activity, marking a shift in the web3 landscape. This shift highlights the increasing influence and potential that AI technologies can bring to the web3 ecosystem.
Meanwhile, despite their growing traction, Blockchain-based games have continuously faced criticism due to underperformance. As a result, they have lost their spot as the leader in the DApp industry. The AI DApps outshined blockchain-powered games for the first time in more than a year.
Despite being relevant in Web3, gaming lost its top spot in market dominance, which dropped to 26%. Since then, the “Other” category has overtaken it, now holding a 28% share. The Other category includes AI-based DApps with prominent platforms like Alaya AI and DIN.
Decentralized gaming applications (DApps) use blockchain technology to deliver an enhanced and distinct gaming experience. Unlike traditional games, where developers control and own in-game assets, DApps let players maintain actual ownership.
The assets here include game characters, items, and currencies, represented as non-fungible tokens on the blockchain.
DApps gaming allows players to sell or transfer any of these assets outside the game’s ecosystem, providing flexibility and value. Moreover, through DApp gaming, players become more engaged and can invest, opening up new possibilities in the sector.
AI and Social DApps Propel Web3 Industry to New Heights
With a record-breaking 15.9 million increase in daily unique active wallets, the DApps sector has witnessed a 78% growth from June. The rising interest and adoption of DApps in various sectors have become more evident from this growth rate.
Also, AI-powered DApps have revolutionized the web3 landscape, offering innovative solutions with new functionalities that enhance user experience. These solutions include applications such as AI-powered financial tools, autonomous agents interacting with blockchains, and sophisticated prediction markets.
Similarly, the social sector has tremendously grown and gained prominence in recent months. Social DApps now account for 20% of the DApp industry, having about 3.11 million unique active wallets daily.
Furthermore, these social DApps are gaining traction by emphasizing user privacy and data ownership. As daily active wallets increase, one can only deduce that there is an increase in engagement with decentralized applications.
Altogether, several factors that have increased awareness of the advantages of blockchain technology may be responsible for this growth. These factors include higher levels of security, transparency, and the technology’s ability to function without intermediaries.
