The third quarter of 2025 saw a mixed picture in the decentralized application (DApp) space. While DeFi continued to experience unprecedented growth, driven by institutional investment and stablecoins, retail participation decreased across various DApp categories. Despite these trends, total value locked (TVL) in DeFi protocols hit an all-time high of $237 billion, signaling a surge in liquidity. However, the number of daily active wallets for DApps declined sharply, with notable falls observed in social media and AI-focused applications. This disconnect reflects ongoing shifts within crypto markets towards institutional support while retail activity continues to wane.