July was anything but quiet for Web3. Despite an 8% drop in daily active unique wallets (dUAW) to 22 million, undercurrents of growth persisted. NFT trading volume skyrocketed 96%, surpassing DeFi in user activity—a rare shift in months. Meanwhile, DeFi’s total value locked (TVL) hit a historic peak of $270 billion, and tokenized stocks saw their market cap surge 220%.

But growth wasn’t without risks. Exploits drained $132 million, and while AI remains one of the most promising sectors, most AI dapps saw double-digit declines in usage. Regulation is catching up fast, with the U.S. passing major crypto bills and global frameworks gaining clarity.

From blue-chip NFT rallies to record DeFi inflows, this month proved Web3 isn’t slowing down—it’s pivoting.

• 22 million unique active wallets interacted with dapps daily in July, down 8% month-over-month (MoM).

• Gaming led dapp categories at 22.4%, followed by AI (18.7%) and NFTs (17.5%).

• NFT trading volume jumped 96% to $530 million, with the average NFT price doubling to $105.

• DeFi TVL peaked at $270 billion on July 28, up 30% MoM.

• AI dapp activity declined, but Dmail, XPIN, and ChainGPT saw steady growth.

• Exploits caused $132 million in losses, up 16% from June.

July followed the typical summer slowdown, with dUAW dropping 8% to 22 million.

• Social dapps saw the steepest decline (-27% to 2.8 million dUAW), as hype-driven platforms like Farcaster and Base-based apps faced high entry barriers.

• AI dapps fell 14% to 4.1 million dUAW, while DeFi dipped 6%, continuing its recent cooldown.

• Gaming proved resilient (+2%), and NFTs held steady.

Category Rankings:

1. Gaming (22.4%)

2. AI (18.7%)

3. NFTs (17.5%)

DeFi, once the dominant sector, now trails NFTs—a clear shift in user priorities.

Solana-based DEXs remained king, fueled by memecoin trading. Other standouts:

• World of Dypians: A gaming dapp with consistent growth.

• AI dapps: Two AI projects cracked the top rankings, signaling enduring interest.

Why DeFi Still Dominates Rankings:
While DeFi’s overall share has slipped, its dapps command loyal users due to higher barriers to entry. In contrast, gaming, social, and NFT dapps face fragmented attention.

Most AI dapps declined in July, but three stood out:

1. Dmail Network: Blockchain-based encrypted email.

2. XPIN Network: AI-curated global news aggregator.

3. ChainGPT: AI-powered crypto tools, including a launchpad for early-stage projects.

Notable Developments:

• Lightchain AI launched a mainnet for on-chain machine learning.

• Theta Network integrated Amazon’s AI chips for applications like "Quakebot" (used by MLS’s San Jose Earthquakes).

• Aethir hit 1 billion compute hours; Render Network migrated to Solana.

• ASI Alliance (SingularityNET, Fetch.ai, Ocean Protocol) merged under the $ASI token.

• Elympics introduced $ELP for AI-driven "Agentic Gaming" tied to NFT IPs like Pudgy Penguins.

Regulatory Moves:
The U.S. appointed a "Crypto and AI Czar," signaling tighter integration of AI into blockchain policy.

DeFi TVL surged 30% in July, peaking at $270 billion on July 28. Key drivers:

• Tokenized stocks: Wallet interactions exploded from 1,600 to 90,000, with market cap up 220%.

• Ethereum dominated ($166B TVL), buoyed by ETH’s 60% price rally and staking yields hitting 29.4% APR.

• Solana’s Hyperliquid captured 35% of chain revenue, processing 60% of perpetual trading volume.

Regulatory Wins:

• GENIUS Act: Stablecoin framework.

• CLARITY Act: Clearer asset classification (SEC vs. CFTC).

• SEC’s "Project Crypto": Roadmap for DeFi-TradFi integration.

NFTs staged a comeback:

• Trading volume doubled (+96% to $530M), though sales dipped 4%.

• Average NFT price soared 103% to $105, driven by blue-chip collections.

• Blur dominated Ethereum NFT volume (80% share), while OpenSea led in users (~27K daily).

• Zora gained traction with low-cost minting on its L2.

Brand Moves:

• Starbucks ended its Odyssey NFT loyalty program.

• Nike SWOOSH partnered with EA Sports for in-game sneakers.

• LVMH, Rolex, Coca-Cola China launched NFT pilots for authentication/collectibles.

Trend: NFTs are evolving from hype to utility—powering identity, ticketing, gaming, and RWAs.

July’s major hacks:

1. CoinDCX ($44M): Exchange server breach (user funds safe).

2. GMX v1 ($42M): Arbitrum exploit targeting GLP pools.

3. BigONE ($28M): Hot wallet breach (exchange covered losses).

Takeaway: Security remains Web3’s Achilles’ heel. Always audit contracts, avoid phishing, and use hardware wallets.

Web3’s momentum is shifting, not slowing. DeFi’s record TVL, NFT’s resurgence, and AI’s maturation—amid regulatory strides—paint a landscape where utility, not speculation, is becoming the north star.

July was anything but quiet for Web3. Despite an 8% drop in daily active unique wallets (dUAW) to 22 million, undercurrents of growth persisted. NFT trading volume skyrocketed 96%, surpassing DeFi in user activity—a rare shift in months. Meanwhile, DeFi’s total value locked (TVL) hit a historic peak of $270 billion, and tokenized stocks saw their market cap surge 220%.

But growth wasn’t without risks. Exploits drained $132 million, and while AI remains one of the most promising sectors, most AI dapps saw double-digit declines in usage. Regulation is catching up fast, with the U.S. passing major crypto bills and global frameworks gaining clarity.

From blue-chip NFT rallies to record DeFi inflows, this month proved Web3 isn’t slowing down—it’s pivoting.

• 22 million unique active wallets interacted with dapps daily in July, down 8% month-over-month (MoM).

• Gaming led dapp categories at 22.4%, followed by AI (18.7%) and NFTs (17.5%).

• NFT trading volume jumped 96% to $530 million, with the average NFT price doubling to $105.

• DeFi TVL peaked at $270 billion on July 28, up 30% MoM.

• AI dapp activity declined, but Dmail, XPIN, and ChainGPT saw steady growth.

• Exploits caused $132 million in losses, up 16% from June.

July followed the typical summer slowdown, with dUAW dropping 8% to 22 million.

• Social dapps saw the steepest decline (-27% to 2.8 million dUAW), as hype-driven platforms like Farcaster and Base-based apps faced high entry barriers.

• AI dapps fell 14% to 4.1 million dUAW, while DeFi dipped 6%, continuing its recent cooldown.

• Gaming proved resilient (+2%), and NFTs held steady.

Category Rankings:

1. Gaming (22.4%)

2. AI (18.7%)

3. NFTs (17.5%)

DeFi, once the dominant sector, now trails NFTs—a clear shift in user priorities.

Solana-based DEXs remained king, fueled by memecoin trading. Other standouts:

• World of Dypians: A gaming dapp with consistent growth.

• AI dapps: Two AI projects cracked the top rankings, signaling enduring interest.

Why DeFi Still Dominates Rankings:
While DeFi’s overall share has slipped, its dapps command loyal users due to higher barriers to entry. In contrast, gaming, social, and NFT dapps face fragmented attention.

Most AI dapps declined in July, but three stood out:

1. Dmail Network: Blockchain-based encrypted email.

2. XPIN Network: AI-curated global news aggregator.

3. ChainGPT: AI-powered crypto tools, including a launchpad for early-stage projects.

Notable Developments:

• Lightchain AI launched a mainnet for on-chain machine learning.

• Theta Network integrated Amazon’s AI chips for applications like "Quakebot" (used by MLS’s San Jose Earthquakes).

• Aethir hit 1 billion compute hours; Render Network migrated to Solana.

• ASI Alliance (SingularityNET, Fetch.ai, Ocean Protocol) merged under the $ASI token.

• Elympics introduced $ELP for AI-driven "Agentic Gaming" tied to NFT IPs like Pudgy Penguins.

Regulatory Moves:
The U.S. appointed a "Crypto and AI Czar," signaling tighter integration of AI into blockchain policy.

DeFi TVL surged 30% in July, peaking at $270 billion on July 28. Key drivers:

• Tokenized stocks: Wallet interactions exploded from 1,600 to 90,000, with market cap up 220%.

• Ethereum dominated ($166B TVL), buoyed by ETH’s 60% price rally and staking yields hitting 29.4% APR.

• Solana’s Hyperliquid captured 35% of chain revenue, processing 60% of perpetual trading volume.

Regulatory Wins:

• GENIUS Act: Stablecoin framework.

• CLARITY Act: Clearer asset classification (SEC vs. CFTC).

• SEC’s "Project Crypto": Roadmap for DeFi-TradFi integration.

NFTs staged a comeback:

• Trading volume doubled (+96% to $530M), though sales dipped 4%.

• Average NFT price soared 103% to $105, driven by blue-chip collections.

• Blur dominated Ethereum NFT volume (80% share), while OpenSea led in users (~27K daily).

• Zora gained traction with low-cost minting on its L2.

Brand Moves:

• Starbucks ended its Odyssey NFT loyalty program.

• Nike SWOOSH partnered with EA Sports for in-game sneakers.

• LVMH, Rolex, Coca-Cola China launched NFT pilots for authentication/collectibles.

Trend: NFTs are evolving from hype to utility—powering identity, ticketing, gaming, and RWAs.

July’s major hacks:

1. CoinDCX ($44M): Exchange server breach (user funds safe).

2. GMX v1 ($42M): Arbitrum exploit targeting GLP pools.

3. BigONE ($28M): Hot wallet breach (exchange covered losses).

Takeaway: Security remains Web3’s Achilles’ heel. Always audit contracts, avoid phishing, and use hardware wallets.

Web3’s momentum is shifting, not slowing. DeFi’s record TVL, NFT’s resurgence, and AI’s maturation—amid regulatory strides—paint a landscape where utility, not speculation, is becoming the north star.