In a seismic shift that’s rattling the crypto sphere, AI-powered crypto apps have seen a remarkable 23% surge in daily unique active wallets during May 2025, according to the latest insights from DappRadar. This swift ascent is not just a number on a chart—it’s a direct challenge to the longstanding dominance of DeFi and Web3 gaming in the blockchain ecosystem.
AI’s Expanding Influence
Artificial intelligence isn’t just a buzzword; it’s becoming a formidable force in the crypto world. The increased activity in AI-driven applications is starting to carve out a substantial piece of the blockchain pie, traditionally dominated by decentralized finance (DeFi) protocols and Web3 gaming platforms. These AI apps are not merely riding the wave of technological advancement; they’re reshaping the landscape, with implications that could reverberate for years. As explored in our recent coverage of AI Crypto Agents Ushering in a New Era of ‘DeFAI’, this evolution is redefining how AI and DeFi intersect.
“AI in crypto isn’t just about automated trading or predictive analytics anymore,” notes Clara Thompson, an analyst at Crypto Insights. “It’s increasingly about creating more intuitive, user-friendly interfaces and personalized experiences, which are becoming critical as more users explore blockchain technology.”
The Challenge to DeFi and Gaming
DeFi platforms, known for their ability to offer financial services without intermediaries, have long been the golden child of the blockchain realm. Similarly, Web3 gaming, with its promise of decentralized, player-driven economies, has captivated users worldwide. Yet, the rise of AI applications is beginning to encroach on these established territories.
This isn’t merely a case of new technology displacing the old. Instead, it reflects a deeper shift in how technological innovations are being integrated into existing frameworks. The AI applications are leveraging machine learning to streamline user experiences, offer predictive insights, and enhance decision-making processes—elements that are becoming increasingly appealing to users who value efficiency and personalization.
“Web3 gaming and DeFi aren’t going anywhere,” says Marco Li, a blockchain developer and enthusiast, “but they need to evolve. AI is setting new standards for user engagement and operational efficiency. It’s like a wake-up call for the industry.”
Historical Context and Market Trends
Historically, the crypto market has been marked by cycles of innovation and disruption. Bitcoin’s inception in 2009 was the first domino, leading to the rise of Ethereum and the smart contract revolution. DeFi’s explosive growth in 2020 further decentralized financial access, while the NFT boom of 2021 introduced blockchain to the art and entertainment industries in unprecedented ways.
Now, as we move through 2025, AI’s emergence as a critical player in this ecosystem seems to be the next chapter in this ongoing saga. This isn’t just a niche trend; it’s part of a broader narrative where technology continuously redefines the boundaries of what’s possible in the digital economy. For a deeper dive into the regulatory implications, see our coverage of the AI-Powered Court System Coming to Crypto With GenLayer.
The Road Ahead
So, what lies ahead for the crypto universe as AI applications continue to gain traction? For one, there’s a growing need for regulatory frameworks that can accommodate these technological advancements while ensuring user security and market stability. Additionally, as AI-driven apps continue to proliferate, issues around data privacy and ethical AI use will likely come to the forefront.
The question of whether DeFi and Web3 gaming can adapt and integrate AI technologies effectively remains open. As the lines between different blockchain sectors blur, collaboration may become more of a necessity than a choice.
“The convergence of AI and blockchain could unlock new potentials we haven’t even considered yet,” muses Thompson. “But it also raises questions about scalability and sustainability—can the infrastructure support this rapid growth?”
In the end, the rise of AI within the crypto space is less about replacing existing paradigms and more about evolving them. As 2025 continues to unfold, the intersection of AI and blockchain will undoubtedly be a focal point of discussion, innovation, and perhaps most intriguingly, competition. The only certainty? The crypto landscape is anything but static, and the coming months promise to be anything but dull.
Source
This article is based on: AI solidifying role in Web3, challenging DeFi and gaming: DappRadar
Further Reading
Deepen your understanding with these related articles:
- Multi-wallet usage up 16%, but AI may address crypto fragmentation gap
- Restaking can make DeFi more secure for institutional traders
- Tokenized Apollo Credit Fund Makes DeFi Debut With Levered-Yield Strategy by Securitize, Gauntlet
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
