The decentralized applications industry (DApp) ended the third quarter of 2025 with mixed results as decentralized finance (DeFi) liquidity rose to a record high while user activity fell sharply, according to new data from DappRadar.
In a report sent to Cointelegraph, DappRadar said the number of daily unique active wallets averaged 18.7 million in the third quarter, down 22.4% compared to the second quarter. Meanwhile, DeFi protocols have collectively raised $237 billion, the highest total value ever recorded in the space.
The report highlights a persistent disconnect between institutional capital flowing into blockchain-based financial platforms and retail user engagement with DApps. While DeFi TVL reached record levels of liquidity, overall activity lagged, indicating weaker retail participation.
“Looking across the quarter, every category saw a decline in the number of active wallets, but the impact was particularly felt in the Social and AI categories,” DappRadar wrote. AI-focused DApps lost more than 1.7 million users, going from a daily average of 4.8 million in the second quarter to 3.1 million in the third quarter, while SocialFi DApps went from 3.8 million to 1.5 million in the third quarter.
Unique active wallet categories in the decentralized apps ecosystem. Source: DappRadar
DeFi TVL reached a new all-time high in the third quarter
DappRadar attributed DeFi’s record liquidity to several converging factors, including growing institutional exposure to Bitcoin (BTC) and stablecoins, regulatory clarity provided by the US GENIUS Act, and new infrastructure supporting real-world asset (RWA) tokenization.
DappRadar said stablecoins have emerged as a bridge between cryptocurrency and traditional finance. As Cointelegraph previously reported, stablecoin inflows reached $46 billion in the third quarter, led by Tether’s USDt (USDT) and Circle’s USDC (USDC).
In addition to stablecoins themselves, platforms for stablecoins also emerged, contributing to the increase in DeFi TVL.
DappRadar pointed to Plasma, a layer 1 chain built specifically for stablecoins that debuted with more than $8 billion in TVL in its first month.
The total value of DeFi was recorded in the third quarter of 2025. Source: DappRadar
Related: $10 billion worth of Ethereum awaits exit as validator withdrawals increase
BNB Chain emerges as a top DeFi network in the third quarter
During the quarter, Ethereum maintained its lead as the top DeFi network with $119 billion in assets locked, despite a modest 4% decline compared to the second quarter. Solana, currently in second place, saw its DeFi TVL fall 33% to $13.8 billion in the third quarter.
While the two largest DeFi networks in TVL showed a slowdown in momentum, the third largest network in DeFi TVL, BNB Chain, saw a 15% increase in locked assets during the quarter.
DappRadar attributed BNB Chain TVL’s rise to the launch of perpetual decentralized exchange (DEX) Aster, which gained momentum in September.
Total value of data locked by networks. Source: DappRadar
As Aster’s volumes skyrocketed within the perpetual trading space, data aggregator DefiLlama questioned the integrity of Aster’s data.
According to DefiLlama co-founder 0xngmi, trading volumes on Aster began to almost exactly mirror Binance Perp’s volumes. As a result, the platform removed Aster from its site.
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