The decentralized application (DApp) industry ended Q3 2025 with mixed results, according to new data from DappRadar. While decentralized finance (DeFi) liquidity soared to an all-time high, user activity plummeted.
In a report sent to Cointelegraph, DappRadar said daily unique active wallets averaged 18.7 million in the third quarter, down 22.4% compared to the second quarter. Meanwhile, DeFi protocols locked a total of $237 billion, making it the highest total value locked (TVL) ever recorded in this space.
This report highlights the continuing disconnect between institutional capital flowing into blockchain-based financial platforms and retail user engagement with DApps. Although DeFi TVL has reached record liquidity levels, overall activity has lagged, suggesting weak retail participation.
“Looking at the quarter as a whole, every category saw a decline in active wallets, but the impact was primarily felt in the social and AI categories,” DappRadar wrote. AI-focused DApps lost more than 1.7 million users, dropping from an average of 4.8 million daily users in Q2 to 3.1 million in Q3. Meanwhile, SocialFi DApps declined from 3.8 million users to 1.5 million users in Q3.
DeFi TVL hits new all-time high in Q3
DappRadar believes DeFi’s record liquidity is due to several collective factors, including increased institutional exposure to Bitcoin (BTC) and stablecoins, regulatory clarity through the US GENIUS Act, and new infrastructure supporting the tokenization of real-world assets (RWA).
DappRadar said stablecoins have emerged as a bridge between cryptocurrencies and traditional finance. As previously reported by Cointelegraph, stablecoin inflows reached $46 billion in the third quarter, led by Tether’s USDt (USDT) and Circle’s USDC (USDC).
Apart from stablecoins themselves, dedicated stablecoin platforms have emerged, contributing to the rise of DeFi TVL.
DappRadar points to Plasma, a Layer 1 chain built specifically for stablecoins, which debuted with over $8 billion in TVL in its first month.
Related: $10 billion in Ethereum awaits exit as validator withdrawals surge
BNB Chain emerges as top DeFi network in Q3
During the quarter, Ethereum maintained its lead as the top DeFi network with $119 billion in locked assets, despite a modest 4% decrease compared to the second quarter. Currently in second place, Solana’s DeFi TVL fell 33% to $13.8 billion in the third quarter.
While TVL’s top two DeFi networks showed slowing momentum, DeFi TVL’s third largest network, BNB Chain, saw a 15% increase in assets locked during the quarter.
DappRadar attributes the increase in BNB Chain TVL to the launch of Aster, a perpetual decentralized exchange (DEX) that gained attention in September.
While Aster’s trading volume has skyrocketed within the perpetual trading space, data aggregator DefiLlama has questioned the integrity of Aster’s data.
According to DefiLlama co-founder 0xngmi, Aster’s trading volume has started to almost exactly reflect Binance Perp’s volume. As a result, the platform delisted Aster from the site.
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