Artificial intelligence is firming up its role in Web3 as the number of AI-powered decentralized applications (DApps) and their active users have grown so far this year, according to DappRadar. 

AI-backed DApps saw 4.8 million daily unique active wallets over May, representing a 23% growth and showing that they are “steadily establishing themselves within the decentralized ecosystem,” DappRadar analyst Sara wrote in a June 5 DApp report for May.

“AI decentralized apps are challenging gaming and DeFi for dominance in the DApp ecosystem,” Gherghelas added.

Decentralized finance (DeFi) and blockchain-based games have for years been some of the largest apps by total value locked and users on most blockchains, and Gherghelas said that AI-powered DApps aren’t just hype, but a trend “reflecting a broader societal shift toward open, user-owned technologies.”

The report noted that the top-performing AI DApps last month remain largely consistent, highlighting the strong staying power of early market leaders.

AI DApps have seen an increase in market dominance this month. Source: DappRadar

The top AI DApp for May was LOL, which has 2 million daily active wallets. The platform uses an AI bot to analyse laughter and rewards users with tokens after it determines how happy they are. 

DappRadar also reported that the most notable newcomer to the rankings is SubHub, an AI-enhanced Web3 notification and marketing platform developed by Dmail that had 82,000 daily unique active wallets in May.

“SubHub’s integration of smart messaging and wallet-based targeting also reinforces the narrative that Social and AI DApps are increasingly intertwined,” Gherghelas wrote. 

Related: AI decentralized apps are coming for the Web3 throne: DappRadar

She noted a number of crypto industry developments around AI, including ThinkAgents.ai unveiling an open-source “Think Agent Standard” protocol for deploying autonomous agents across decentralized networks and stablecoin giant Tether entering the AI space with plans for a decentralized AI platform merging P2P communication with crypto transactions.

Need for decentralized AI

DappRadar also reported that 77% of Americans believe decentralized AI would be more beneficial than centralized models, according to a Harris Poll conducted in May.

Additionally, 56% of respondents would prefer AI development to occur via decentralized systems, it noted. 

“This data underscores a cultural shift, one that aligns with Web3’s ethos of transparency, user ownership, and anti-monopoly values,” Gherghelas said.

Magazine: Ignore the AI jobs doomers, AI is good for employment says PWC: AI Eye