DeFi TVL Plummets 27% as AI dApps Surge in Q1 2025

A recent report by DappRadar reveals a significant market shift in the blockchain space during Q1 2025. The DeFi sector experienced a substantial decline, with total value locked (TVL) dropping 27% to $156 billion. This decrease was primarily attributed to security breaches impacting major blockchains like Ethereum, which saw its TVL plummet by 37%. In contrast, the rise of AI and social dApps is presenting an intriguing growth trend. Daily active users for AI protocols surged by a remarkable 29%, reaching an average of 2.6 million per month. Social dApp engagement also witnessed a 10% increase, reflecting evolving user preferences.