# July Dapp Report: Cooling Activity, DeFi TVL Hits Record High, Gaming Shows Resilience

*DeFi TVL surges to a new high of $270B, but market attention shifts to NFTs; AI hype cools while exploit losses rise.*

By [Penelope](https://paragraph.com/@-penelope) · 2025-08-11

defi tvl

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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.

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### **Key Takeaways**

*   **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.
    

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### **1\. Dapp Activity Cools**

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.

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### **2\. Top Web3 Dapps by Activity**

**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.

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### **3\. AI Dapps: Rise, Fall, and Future**

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.

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### **4\. DeFi TVL Hits All-Time High**

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.
    

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### **5\. NFT Activity Overtakes DeFi**

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.

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### **6\. Exploits Drain $132 Million**

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.

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### **Final Thoughts**

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.

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*Originally published on [Penelope](https://paragraph.com/@-penelope/july-dapp-report-cooling-activity-defi-tvl-hits-record-high-gaming-shows-resilience)*
