DApp Market Analysis: Artificial Intelligence Leads, RWA and Gaming Drive New Directions for NFT

Against the backdrop of a price recovery in the cryptocurrency market, the DApp ecosystem is showing a trend of diversified development. AI agent applications are emerging strongly, the value focus of NFTs is shifting from ostentation to functionality, while DeFi is progressing amidst the contradiction of rising total locked value and shrinking financing. These changes not only reflect market activity, but also reveal shifts in user preferences, stagnation in certain areas, and key trends that are reshaping the future of DApps.

The current market is no longer solely driven by speculation. Users are beginning to pursue real value, whether it be AI agents capable of completing tasks, NFTs linked to physical assets, or DeFi platforms that offer sustainable returns. However, risks still exist: losses caused by security incidents have significantly increased, highlighting the industry's vulnerability.

Main Findings

1. In the second quarter of 2025, the average number of daily active unique wallets for DApps was 24.3 million, a slight decrease of 2.5% compared to the previous quarter, but a growth of 247% compared to the beginning of 2024.

2. The total locked value in DeFi reached $200 billion, with a quarter-on-quarter increase of 28%, mainly benefiting from Ethereum's 36% rise. However, financing in the DeFi sector saw a significant decline, with only $483 million raised in the second quarter, bringing the total financing amount to $1.4 billion in the first half of 2025.

3. NFT trading volume decreased by 45% to $867 million, but the number of sales surged by 78% to 14.9 million, reflecting a drop in market average prices while the number of traders increased by 20%.

4. RWA NFT trading volume increased by 29%, jumping to second place. The Courtyard platform became the second largest NFT market by trading volume this quarter.

5. The trading volume of Guild of Guardians NFT has surged to first and fourth place, surpassing BAYC and CryptoPunks, marking a significant breakthrough for game-related NFTs.

6. The Web3 sector suffered losses of $6.3 billion due to security incidents, an increase of 215% compared to the previous period. The Mantra exploit case had a single loss of up to $5.5 billion, making it the second largest security incident in the cryptocurrency industry since the FTX incident in 2022.

DApp Activity Analysis

The DApp activity level decreased slightly by 2.5% this quarter, with an average of 24.3 million daily active unique wallets. Although there was a slight decline compared to the previous quarter, it still demonstrates the stability of the ecosystem and reflects users' continued interaction with DApps across various application domains. It is worth noting that many users operate multiple wallets, so there is a difference between the number of daily active unique wallets and the actual number of users.

The number of active wallets in the DeFi and gaming sectors has declined, with DeFi down 33% and gaming down 17%. In contrast, social and AI-related DApps have seen growth, aligning with broader industry trends. In the social sector, the rise of information finance (InfoFi) is noteworthy, with platforms like Kaito and Cookie DAO standing out. The AI sector is dominated by agent-based DApps, with Virtuals Protocol emerging as a leader.

These sector changes have also affected the distribution of market share. The decline in activity in the DeFi and gaming sectors has led to a shrinking market share, while the AI and social sectors have expanded their shares. Compared to the first quarter of 2025, the rise of the AI sector is rapid, with the social sector following closely behind. It is expected that by the end of the year, the AI sector is likely to surpass either gaming or DeFi in terms of dominance.

Development Trend of DeFi

The total locked value in DeFi this quarter has surpassed $200 billion, with a quarter-on-quarter increase of 28%. The total locked value of most major blockchains has shown steady growth, with only Tron experiencing an 8% decline. Ethereum continues to hold the leading position in the DeFi space with a 62% share, while Solana ranks second with a 10% share.

Hyperliquid L1 performed the best, with its TVL skyrocketing by 547%. This high-performance Layer 1 blockchain is designed specifically for on-chain perpetual contracts and spot trading, utilizing the HyperBFT consensus model inspired by HotStuff.

However, the investment enthusiasm in the DeFi sector has cooled down. A total of $483 million was raised this quarter, a decrease of 50% compared to the previous quarter. So far in 2025, DeFi projects have secured approximately $1.4 billion in funding. Although the explosive growth seen in past cycles has slowed down, it still indicates a sustained interest from capital in this field, which may suggest a more mature direction for capital allocation.

NFT Market Transformation

The NFT market is exhibiting a contradictory situation of declining transaction value but surging sales volume. This quarter, NFT transaction value plummeted by 45%, but the trading volume increased by 78% against the trend. This confirms that NFTs are becoming more affordable, and the market's enthusiasm has not waned; rather, it has shifted in nature.

The trading volume of personal avatar NFTs has suffered a heavy blow, plunging 72%. Meanwhile, RWA NFTs have jumped to second place in the trading volume rankings with a 29% increase. The trading volume of art NFTs has decreased by 51%, but the transaction volume has surged by 400%, indicating that the prices of artworks have significantly dropped, making art NFTs more accessible to ordinary buyers.

Domain NFTs are making a comeback, with both trading volume and sales surging. This growth is primarily driven by the TON blockchain ecosystem, as Telegram users are competing to purchase anonymous domain names based on digital numbers.

The average monthly NFT traders this quarter reached 668,598, an increase of 20% compared to the previous quarter. This phenomenon, combined with the surge in sales, indicates that users are steadily returning to the NFT space, although their motivations may differ from those during past booms.

Although OpenSea's trading volume has significantly decreased, it still maintains its leading position. Its sales have risen in sync with the Courtyard platform, partly due to the upcoming SEA token airdrop event. The Courtyard platform has quickly risen to the second position in the industry, highlighting the strong momentum of the RWA narrative in the NFT space.

It is noteworthy that the Guild of Guardians game NFT collection has topped the quarterly trading volume list for the first time, surpassing blue-chip projects such as CryptoPunks and BAYC. This confirms the overall trend that NFT market activity in the second quarter was primarily driven by RWA and gaming assets.

Security Challenges

In the second quarter of 2025, the Web3 sector lost $6.3 billion due to hacker attacks and security vulnerabilities, an increase of 215% compared to the previous quarter, marking one of the heaviest loss records since the FTX collapse. Among these, 87% of the losses came from the Mantra crash event, reflecting that although the number of security incidents throughout the year was low, the severity of individual cases significantly raised the overall losses.

The five major security incidents this quarter include:

1. Mantra insider selling incident: The price of the token OM plummeted over 90%, and the market value of 5.5 billion dollars evaporated in an instant.
2. Individual user private key theft incident: A user lost 3520 Bitcoins (approximately $330.7 million) due to a social engineering attack.
3. Cetus Protocol hacking incident: Sui ecosystem DEX was attacked, resulting in a loss of $260 million.
4. Nobitex exchange hacking incident: Iranian exchange attacked, with losses exceeding 82 million dollars.
5. UPCX protocol vulnerability incident: Attackers infiltrated the ProxyAdmin contract and stole approximately 70 million dollars.

These events highlight the severe challenges the industry still faces in terms of security, reminding developers, investors, and users to remain vigilant and strengthen their awareness of security and protective measures.

Conclusion

In the second quarter of 2025, the DApp industry will enter a stage of consolidation and transformation. AI and social applications are on the rise, while the NFT sector is leaning towards RWA and gaming assets, reflecting a shift from speculative hype to practical value. Although DeFi faces a cooling in financing, it still maintains a core position. However, the enormous losses caused by security incidents serve as a warning that the industry needs to seek a balance between innovation and risk control. The future success of DApps will depend on their attractiveness, security, sustainability, and ability to create real value.