Summary of DappRadar's January 2025. Report.
Market Overview and User Engagement.
The decentralized application (dapp) ecosystem is on the decline, as stated by DappRadar in January 2025.. 1. A dip in the crypto market at the beginning of the year was observed, as daily active wallets decreased by 6% from December, with 26.7 million unique users registered. This decline is a reflection of the challenging circumstances faced by the crypto world in general.
Performance of Dapps and Total Value Locked
Gaming, artificial intelligence (AI), and NFT sectors were among the industries that experienced significant market declines in the dapp industry, as stated in this report. Decentralized Finance (DeFi) was the only sector that saw growth, comprising 28.1% of all active wallets and slightly surpassing gaming (27.2%). In addition, the Total Value Locked (TVL) experienced significant declines across all major blockchains, with Ethereum losing 23.5% and Solana losing 4%.
NFT Trends and AI's Rise.
The NFT market experienced a 27% decline in trading volume, approaching $1 billion, while sales only decreased by 6%, suggesting continued interest. Even though Ethereum experienced a 37% decline from December, it continued to be the preferred choice for NFT transactions. Increasing interest in decentralized applications focused on artificial intelligence can be seen through the rise and success of AI dapps, with 2.2 million active wallets representing 8.5% or more of total users.