Web3 Gaming Outpaces DeFi Despite Decrease in Daily Active Wallets
Blockchain gaming and decentralized finance (DeFi) remained the most active sectors in the Web3 ecosystem during October, according to a recent DappRadar report. The data shows that total daily active wallets dropped by 3% to 16 million, but Web3 gaming claimed 27.9% of all decentralized application (DApp) activity, marking its highest share this year.
DeFi Activity Holds Steady Amid Market Pressure
DeFi sustained a solid 18.4% share of DApp use, despite ongoing market volatility and regulatory pressure. Top DApps for the month included Raydium, Pump.fun, Jupiter Exchange, OKX Dex, and PancakeSwap v2. However, total value locked (TVL) in DeFi decreased by 6.3% in October, ending the month at $221 billion, and declined further to $193 billion in early November due to a broader market downturn and regulatory uncertainty.
NFT Trading Grows as DeFi Faces Setbacks
NFT markets saw a resurgence, with trading volume rising by 30% in October to $546 million and transaction count reaching 10.1 million�the highest monthly figure for 2025 to date. In contrast, DeFi�s downturn was intensified by a market crash on October 10, which impacted assets across lending platforms and exchanges. Additional strain emerged when DeFi protocol Stream Finance experienced a security incident, prompting new concerns about stablecoin credit exposure and vulnerabilities in the ecosystem.
Regulatory Developments Influence DeFi Landscape
Regulatory challenges continued as several U.S. Senate Democrats proposed expanding Know Your Customer (KYC) requirements to non-custodial wallets. Critics argue this could shift DeFi activity offshore. In response, major Ethereum stakeholders, including Aave, Uniswap, Lido, Curve, and The Graph, launched the Ethereum Protocol Alliance for Advocacy (EPAA) to coordinate efforts and ensure decentralized infrastructure is represented in regulatory discussions.
New Platforms Aim to Increase DeFi Transparency
Thursday also saw the launch of a new modular oracle network and a risk ratings platform focused on DeFi. These platforms aim to improve transparency and credit evaluation for lending protocols as the sector navigates an evolving regulatory and market environment.
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