As Bitcoin surged to a new all-time high in May, sparking momentum across cryptocurrencies, the decentralized app industry also saw a revival.

In fact, DappRadars latest findings identify May 2025 as a turning point for the dapp sector. During the same period, the NFT market also saw signs of life.

Turning Point for the Dapp Ecosystem

In May, the dapp industry exhibited renewed optimism as the daily Unique Active Wallets (dUAW) rose 8% to 25 million, amid broader positive market trends. Notable growth was seen in three key sectors: AI dapps surged 23% to 4.8 million dUAW, social dapps grew 21% to 4.3 million, and NFT dapps increased 9% to 3.9 million.

These sector-specific gains indicate stronger user engagement and contribute to a more balanced dapp ecosystem, according to DappRadars report. Meanwhile, AI, DeFi, and gaming dapps were found to have been converging in terms of user activity, and each captured a similar share, which evidenced a diversified and maturing market

The DeFi sector also maintained strong growth as the Total Value Locked (TVL) surged by 25% to around $200 billion. This growth aligns with the overall market rally, driven by Bitcoins new all-time high and Ethereums 40% price increase, which boosted DeFi asset values and liquidity.

Decentralized exchange Hyperliquid stood out by reaching $244 billion in trading volume, capturing about 10% of Binances market share despite massive criticism from prominent industry players after the controversial handling of a market manipulation incident. This achievement positioned Hyperliquid among the top 5 exchanges by trading volume, across both centralized and decentralized platforms, and within the top 10 by TVL across all blockchain networks.

NFT Market Rebounds

Meanwhile, the NFT market showed renewed activity in May, with trading volume rising 40% month-over-month to $280 million. Transaction counts also climbed 35%, totaling 2.7 million. Although these figures signal improving momentum, DappRadar said that it is premature to call it a full recovery. Continued growth over the coming months will be crucial, but the recent gains still offer a promising sign for the sector.

Ethereum regained its lead in the NFT market in May, with a 30% jump in trading volume and a 53% market share. It was followed by Immutable zkEVM at 13% and Abstract at 10%. Abstract’s 1200% surge was largely driven by speculation tied to farming incentives and potential airdrops.