While daily Web3 activity stayed steady at 24 million in Q2 2025, the sector’s composition is changing significantly. DeFi continues to dominate with a weekly transaction count of 240 million, but Ethereum gas usage has been shifted by the rise of Real World Assets (RWA), DePIN, and AI. Smart contract platform coins and yield-generating DeFi and RWA tokens are outperforming the market, while AI and DePIN lag despite strong narratives. Altcoins represent specific activity sectors within Web3, aiming to offer decentralized alternatives to traditional internet services. Assessing the altcoin market requires looking beyond price fluctuations. Key indicators like gas usage, transaction counts, and unique active wallets (UAW) reveal on-chain activity and adoption. Coin price performance can further indicate market alignment with on-chain trends.
AI and Social DApps gaining traction
The rise in Dapp activity is a testament to the growing popularity of these applications. UAW counts distinct addresses interacting with DApps, offering a proxy for adoption breadth. DappRadar’s Q2 2025 report shows steady daily wallet activity at around 24 million. However, a shift in sector dominance is emerging: crypto gaming remains the largest category (over 20%), though down from previous quarters. DeFi has also slipped, falling from over 26% to below 19%. Meanwhile, Social and AI-related DApps are gaining traction. Farcaster leads Social with approximately 40,000 daily UAW, while in AI, agent-based protocols like Virtuals Protocol (VIRTUAL) are attracting 1,900 weekly UAW.