Crypto News: DeFi TVL Plummets 27% in Q1 as AI and Social Apps Soar, DappRadar Reports

The decentralized finance (DeFi) sector suffered a sharp decline in Q1 2025, with total value locked (TVL) plunging 27% to $156 billion, according to a new DappRadar report released April 3. The drop reflects a broader pullback across crypto markets amid persistent macroeconomic uncertainty and fallout from a major exploit on crypto exchange Bybit.Ethereum, Sui Lead TVL DeclinesEthereum, the largest blockchain by DeFi TVL, saw its locked assets drop 37% to $96 billion, while Sui suffered the steepest decline among top-10 chains, falling 44% to $2 billion. Other major blockchains such as Solana, Tron, and Arbitrum also recorded over 30% drops in TVL.According to DappRadar, chains with lower stablecoin reserves and higher token withdrawals faced additional pressure, amplifying the impact of declining token prices like Ether (ETH), which fell 45% to $1,820 over the quarter.Berachain Emerges as the Lone GainerIn a surprising twist, the newly launched Berachain defied the downtrend, amassing $5.17 billion in TVL between its Feb. 6 launch and March 31. It was the only top-10 blockchain to post positive TVL growth in Q1.AI and Social Protocols Surge in UsageWhile DeFi, NFT, and GameFi sectors contracted, AI and social applications flourished. Daily Unique Active Wallets (DUAW) interacting with AI protocols rose 29%, and social dapps saw a 10% increase in user activity.DappRadar highlighted the “explosive growth” of AI-powered agent protocols, stating they have moved beyond concept to shaping real-world user behavior. The monthly average DUAW for AI and social protocols climbed to 2.6 million and 2.8 million, respectively.NFT and GameFi Show WeaknessNFT trading volume dropped 25% to $1.5 billion, led by:OpenSea: $599MBlur: $565MPudgy Penguins topped NFT sales volume at $177 million, while CryptoPunks maintained elite status with $63.6 million from just 477 sales, showcasing their ongoing prestige despite reduced accessibility, according to Cointelegraph.