4-4-2025 – The opening quarter of 2025 witnessed a considerable downturn in decentralised finance (DeFi), whilst artificial intelligence and social media applications demonstrated remarkable resilience, according to comprehensive analysis by DappRadar.
The cryptocurrency landscape experienced significant turbulence, with the total value locked (TVL) in DeFi protocols plummeting to $156 billion. This decline, attributed to widespread economic uncertainty and the aftermath of the devastating Bybit security breach, coincided with Ethereum’s sharp value depreciation to $1,820.
Amongst blockchain networks, Ethereum maintained its dominant position despite suffering a 37% reduction in TVL to £96 billion. The emerging Sui blockchain bore the brunt of the market downturn, experiencing a staggering 44% decrease to $2 billion. Substantial losses also befell Solana, Tron, and Arbitrum networks, each surrendering more than 30% of their locked value.
A beacon of hope emerged in the form of Berachain, the nascent blockchain platform that defied market trends. Since its February launch, it has accumulated an impressive $5.17 billion in locked value, standing alone amongst its top-10 peers in achieving growth.
The digital collectibles market faced its own challenges, with NFT trading volume declining to $1.5 billion. OKX’s marketplace emerged as the leading platform, securing $606 million in sales, narrowly outperforming traditional powerhouses OpenSea and Blur. Pudgy Penguins dominated the collectibles sector with $177 million in sales, whilst the prestigious CryptoPunks maintained their exclusive appeal, generating $63.6 million from fewer than 500 transactions.
In contrast to the broader market decline, artificial intelligence and social media applications demonstrated remarkable vitality. Daily unique active wallets engaging with AI protocols surged by 29%, whilst social applications witnessed a 10% increase. The monthly average of active wallets in these sectors reached 2.6 million and 2.8 million respectively, highlighting a significant shift in user behaviour and technological adoption.
DappRadar’s analysis particularly emphasised the transformative impact of AI agent protocols, noting their evolution from theoretical concepts to practical applications that are actively reshaping user engagement patterns in the digital asset space.
