AI is increasingly establishing itself in the Web3 ecosystem, with a reported 23% growth in daily unique active wallets for AI-powered decentralized applications (DApps) in May, as per DappRadar. The number of active wallets reached 4.8 million, illustrating that AI DApps are making significant inroads into the market share previously dominated by DeFi and Web3 gaming. Notably, the top AI DApp, LOL, recorded 2 million daily active wallets, using an algorithm that rewards users based on their happiness. Another emerging player, SubHub, a marketing platform, gathered 82,000 daily active wallets, highlighting a trend of increased integration between social and AI DApps. The report reflects a rising preference for decentralized approaches to AI, with a Harris Poll indicating that 77% of Americans believe decentralized models hold more benefits than centralized ones. This shift aligns with the Web3 principle of transparency and user ownership.

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