AI decentralized apps (DApps) have seen a spike in user activity and could soon challenge gaming and DeFi for the top spot in the DApp ecosystem, according to blockchain analytics platform DappRadar.

Gaming and DeFi are both sitting on 21% dominance in April, judged by percentage of unique active wallets, while AI has climbed to 16%, up from the 11% recorded in the February report, data in DappRadar’s April industry report shows.

“As user interest in artificial intelligence tools grows across industries, AI-powered DApps are steadily carving out their place in the decentralized ecosystem,” DappRadar analyst Sara Gherghelas said. 

“If this trend continues, AI could soon challenge the traditional dominance of DeFi and Gaming, signaling a new era in the DApp landscape.”

AI DApps have seen a jump in market dominance this month, while market leaders have declined slightly. Source: DappRadar

AI DApp activity surged over 26% in April to reach 3.8 million daily unique active wallets (dUAW), up from the 2.6 million dUAW recorded in February.

In contrast, DeFi activity dropped by 16%, settling at 4.8 million dUAW, which is equal to the gaming sector, which saw a 10% decline as well.

Source: DappRadar

Gherghelas said most of the top AI DApps being tracked by DappRadar have remained the same, with many tied to AI agent infrastructure and those building utility.

LOL, a project that styles itself as an AI-powered mining system, is the top AI DApp on DappRadar’s list in dUAW.

LOL encourages users to send a voice recording of laughter to Telegram groups that use the LOL AI bot, which then uses factors like pitch and frequency to calculate the number of LOL tokens paid out in rewards.

Coming in second is AI-powered decentralized messaging service Dmail Network. Rounding out the top three is World.‎‎‎Fun, a launchpad that allows users to deploy AI agents into multi-agent simulations.

“This month, the top AI DApps on our platform remain largely unchanged, reinforcing the staying power of early leaders in this space. These projects are not just riding the hype: they’re building utility,” Gherghelas added.

Last December, crypto industry execs told Cointelegraph they expected AI agents to transform Web3 in 2025, flagging crypto staking and onchain trading as emerging early use cases. 

However, there was also speculation that AI would face headwinds, including technical challenges, regulatory hurdles, and centralization. 

Social DApps rise as Web3 holds ground

Social DApps also saw a spike in activity for April, with an 18% increase to 3.6 million dUAW. Social DApp market dominance also grew to over 15% for the month.

Related: Crypto users cool with AI dabbling with their portfolios: Survey

Gherghelas said overall that “Web3 is holding its ground,” despite wider market turbulence in the wake of sweeping US tariffs, with 23 million daily active wallets recorded in April, compared to the 24 million recorded in February.

“April’s top performers underscore a key narrative: utility and narrative-driven hype, especially around memecoins and AI, are major drivers of user engagement,” she said. 

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Ether surged 20% in the past 24 hours following the launch of the Pectra upgrade, with some crypto traders suggesting the growing number of ETH long positions could mark a “turning point” for the asset that has faced uncertain sentiment throughout most of 2025.

At the time of publication, Ether (ETH) is trading at $2,230, up 19.6% over the past 24 hours, according to CoinMarketCap data. Pseudonymous crypto trader Daan Crypto Trades said it was a “pretty insane candle.” Over the same 24 hours, Ether Open Interest (OI) spiked 21%. 

Ether price pump caught traders offside

The surge followed the long-awaited Pectra Upgrade, which went live on May 7, introducing new wallet features, increased staking limits and scalability improvements to Ethereum.

Popular crypto trader Alex Kruger said on May 8 that Ether’s price spike was primarily due to “new longs.”

If Ether were to fall back to $2,000, approximately $2.06 billion in long positions would be at risk of liquidation, according to CoinGlass data. The price surge caught many traders offside, with approximately $328 million in Ether short positions liquidated over the same period.

Crypto trader Bob Loukas said, “ETH holders thinking this might finally be the turning point.”

2025 has not been a strong year for Ether’s price, which fell 56% from its Jan. 1 price to $1,472 by April 9 — its lowest point this year — as sentiment weakened throughout the year.

Ether is up 52% over the past 30 days. Source: CoinMarketCap

Ether’s recent rally coincides with Bitcoin (BTC) gaining 3.59% over the same period and nearly 6% over the past seven days, reclaiming the $100,000 mark on May 8 for the first time in over three months. 

In comments to Cointelegraph, onchain options protocol Derive founder Nick Forster said Ether’s recent price surge was due to a combination of factors, beyond just the Pectra hard fork. 

Forster pointed out the US trade deal with the UK, where US President Donald Trump “slashed tariffs on British cars and steel.” He also pointed to the crypto exchange Coinbase, which announced the acquisition of Deribit for $2.9 billion.

Related: Ethereum price finally ‘breaking out,’ data suggests — Is $3K ETH next?

Since 2013, Ether has averaged a 62.2% return in the second quarter. Based on its price on April 1, Ether could reach around $2,950 by the end of June if history repeats. 

However, the momentum has not crossed over with spot Ether ETFs yet. For the third day running, spot Ether ETFs posted outflows on May 8, totaling $16.1 million, according to Farside data.

Meanwhile, the overall crypto market also saw an uptick in prices and sentiment following Bitcoin’s surge. Over the 24 hours, the entire crypto market surged 4.95%, and the Crypto Fear & Greed Index has moved further into “Greed’ territory, bumping up another 8 points to a score of 73.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Fresh off its most recent Bitcoin purchase, Japanese investment firm Metaplanet is raising more funds through another bond issue to expand its growing crypto treasury.

Through a $21.25 million issue of “0% Ordinary Bonds,” the firm said in a May 9 statement that the “funds raised will be allocated to the purchase of Bitcoin.”

Zero-coupon bonds don’t offer any interest to the holder. Most of the time, they are issued at a steep discount from their normal value, and when they mature, the holder receives the full value.

Following a board of directors meeting, the firm said it will issue a 14th Stock Acquisition Rights to EVO Fund, an investment management firm in the Cayman Islands, with a redemption date of Nov. 7.

Source: Metaplanet

At current prices, Metaplanet could buy 206 Bitcoin (BTC) if it raises the full $21.25 million, according to CoinGecko. The firm first flagged plans to buy Bitcoin last April. 

BitcoinTreasuries.NET shows Metaplanet is Asia’s largest public corporate holder of Bitcoin and ranks 11th globally.

Metaplanet’s stock (3350T) has shot up over 1,600% in the last year and is trading for 511 Japanese yen ($3.50), according to Google Finance.

Metaplanet shares have shot up significantly in the last year. Source: Google Finance

Metaplanet just keeps buying Bitcoin 

On May 7, the Tokyo-listed firm disclosed that it spent $53.4 million acquiring 555 Bitcoin at an average price of $96,134. The company now holds 5,555 BTC, purchased for $481.5 million at an average price of $86,672. 

Metaplanet also announced on May 7 the issuance of another $25 million in zero-coupon ordinary bonds to fund more Bitcoin buys

On May 1, Metaplanet said it would launch a wholly owned US subsidiary, Metaplanet Treasury, based in Florida. It plans to raise $250 million to further its Bitcoin strategy and tap the US capital markets.

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Meanwhile, a growing number of companies have decided to add Bitcoin to their balance sheets, following in the steps of Michael Saylor’s company, Strategy, formerly MicroStrategy.  

Strive Asset Management announced on May 7 that it will transition into a Bitcoin treasury company. Meanwhile, video game retailer GameStop Corporation (GME) finished a convertible debt offering on April 1 that raised $1.5 billion, with some proceeds earmarked for buying Bitcoin. 

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