Alaya

The Sandbox

DappRadar

Ronin

In contrast to the current market gloom in crypto and economics, the Web3 ecosystem is showing resilience and continued growth, and the decentralized application (DApp) sector is experiencing a significant shift as artificial intelligence-based DApps take the lead in the Web3 ecosystem.&nbsp;
According to DappRadar’s “DApp Industry Report for July 2024," AI DApps now <a href="https://dappradar.com/blog/ai-dapps-dominate-web3-industry-leading-with-28-activity-share#Chapter-6" target="_blank" rel="noopener nofollow">dominate</a> the market, capturing an impressive 28% of daily activity.
<h3 data-ct-non-breakable="true" id="gaming-sector-loses-top-spot">Gaming sector loses top spot</h3>
Blockchain-based games, long criticized for their subpar gameplay, have now lost their position as the leading sector in the DApp industry for the first time in over a year.
While gaming continues to be an integral part of Web3, in July, the gaming sector’s dominance dropped to 26%, overtaken by the “Other” category, which now holds a 28% share. This Other category predominantly comprises AI-based DApps, including notable platforms like DIN and Alaya AI.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/2e547ec8-7afe-4440-89cc-3fc646a834ba.png" alt="Web3 ecosystem thrives as AI DApps capture 28% market share" title="">
 <figcaption style="text-align: center;">
 DApps industry dominance by unique active wallets from January to July 2024&nbsp; Source: DappRadar
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</figure>
Decentralized gaming applications leverage blockchain technology to offer a unique gaming experience. Unlike traditional games, where game assets are owned and controlled by game developers, gaming DApps provide players with actual ownership of their in-game assets. 
These assets, such as characters, items and currencies, are represented as non-fungible tokens (NFTs) on the blockchain, allowing players to trade, sell, or transfer them outside the game’s ecosystem.
<h3 data-ct-non-breakable="true" id="dapp-industry-surges-forward">DApp industry surges forward</h3>
Meanwhile, daily unique active wallets in the DApp sector have surged to a record-breaking 15.9 million, a 78% increase from June, showing the growing interest and adoption of DApps across various sectors.
Related: <a href="https://cointelegraph.com/news/ronin-blockchain-2m-daily-active-users">Gaming blockchain Ronin records 2M daily active users: Token Terminal</a>
AI DApps are revolutionizing the Web3 industry by offering innovative solutions that leverage AI to enhance user experiences and provide new functionalities. These applications range from <a href="https://cointelegraph.com/news/ai-financial-tools-a-smart-way-to-manage-money-or-a-risky-experiment">AI-driven financial tools</a> to <a href="https://cointelegraph.com/news/unlocking-prediction-markets-potential-roundtable-with-azuro-polygon-and-gnosis">sophisticated prediction markets</a> and autonomous agents interacting within the blockchain ecosystem.
The social sector has experienced notable growth and has become more prominent in recent months. It now accounts for 20% of the DApp industry and has 3.1 million unique active wallets daily. Social DApps are playing an increasingly important role in the Web3 ecosystem by providing decentralized social networking platforms that focus on user privacy and data ownership.
The increase in daily active wallets suggests a rising <a href="https://cointelegraph.com/news/dapp-developers-can-benefit-from-decentralization-without-compromise-heres-how">engagement with decentralized applications.</a> This trend may be influenced by greater awareness of blockchain technology’s potential advantages, including improved security, transparency and the capacity to function without intermediaries.
Magazine: <a href="https://cointelegraph.com/magazine/musk-empire-exchange-listing-sandbox-web3-gamer/">Web3 Gamer: When Musk Empire listing? Find love in The Sandbox and more</a>

Web3 ecosystem thrives as AI DApps capture 28% market share

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Cointelegraph

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