The decentralized applications (DApp) sector ended the third quarter of 2025 with mixed results, as decentralized finance (DeFi) liquidity reached an all-time high while user activity fell sharply, according to new data from DappRadar.
In a report sent to Cointelegraph, DappRadar said daily unique active wallets averaged 18.7 million in the third quarter, down 22.4% from the second quarter. Meanwhile, DeFi protocols have collectively locked $237 billion, the highest total value locked (TVL) ever recorded in the space.
The report highlights a persistent divergence between institutional capital flowing into blockchain-based financial platforms and retail user engagement with DApps. While DeFi TVL reached record liquidity levels, overall activity lagged, suggesting lower retail participation.
“Looking at the quarter as a whole, every category noted 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, falling from a daily average of 4.8 million in Q2 to 3.1 million in Q3, while SocialFi DApps fell from 3.8 million to 1.5 million in Q3.
DeFi TVL hits new all-time high in Q3
DappRadar attributed DeFi’s record liquidity to several converging factors, including growing institutional exposure to Bitcoin (BTC) and stablecoins, regulatory clarity from the US GENIUS Act, and new infrastructure supporting real-world asset (RWA) tokenization.
DappRadar said stablecoins have become a bridge between cryptocurrency and traditional finance. As Cointelegraph previously reported, stablecoin flows reached $46 billion in the third quarter, led by Tether’s USDt (USDT) and Circle’s USDC (USDC).
Besides stablecoins themselves, dedicated stablecoin platforms have emerged, contributing to the increase in DeFi TVL.
DappRadar highlighted Plasma, a layer 1 chain purpose-built for stablecoins, which debuted with over $8 billion in TVL in its first month.
Related: $10B worth of Ethereum awaits release as validator withdrawals surge
BNB Chain Emerges as One of the Top DeFi Networks in Q3
During the quarter, Ethereum maintained its lead as the top DeFi network with $119 billion in assets locked, despite a modest 4% decline from the second quarter. Solana, currently in second place, saw its DeFi TVL drop 33% to $13.8 billion in the third quarter.
While the top two DeFi networks by TVL showed slowing momentum, the third largest DeFi TVL network, BNB Chain, saw a 15% gain in assets locked during the quarter.
DappRadar attributed the increase in BNB Chain TVL to the launch of perpetual decentralized exchange (DEX) Aster, which gained traction in September.
As Aster volumes skyrocketed in the perpetual exchange space, data aggregator DefiLlama doubted the integrity of Aster’s data.
According to 0xngmi, co-founder of DefiLlama, trading volumes on Aster have started to almost exactly mirror volumes on Binance Perp. As a result, the platform removed Aster from its site.
Review: Forget The Terminator: SingularityNET’s Janet Adams is building AGI with heart
