Web3’s Bullish Signal: TVL Cracks $200B While NFT Market Booms

In May 2025, the dApp scene bounced back. Total value locked (TVL) hit $200 billion. NFT trading rose by 40% to $280 million. Daily active wallets jumped across DeFi, GameFi, Social, and AI apps. This boost shows users are returning to Web3.

dApps Roar Back—TVL, Users, and NFT Sales Soar

DeFi TVL climbed to $200 billion—a level not seen since early 2024. , whose native token ETH saw a 40% price jump in April, drove most of this growth and accounted for the majority of the total value. Solana and Tron also gained, bringing their respective TVLs to $10.9 billion and $6 billion.

NFT sales surged, with 2.7 million transactions in May—a 35% jump from April. Ethereum led the way, making up over half of NFT activity. New generative-art drops and Telegram-linked domain sales fueled that growth.

• GameFi wallets rose by 7.5%, 
• Social dApps saw daily users jump 21% to 4.3 million,
• AI-powered dApps hit 4.8 million daily users—a 23% increase. 

These numbers suggest people want more than just trading; they want gaming, art, and AI tools on blockchain.

Messari predicts that TVL could top $220 billion by July if an ETH ETF gains approval. They base this on Ethereum’s price momentum and rising institutional interest in DeFi.

High Fees, Security Risks, and Regulatory Clouds

High Ethereum fees remain a big hurdle. In May, the average gas cost stayed above $12 per transaction. That price blocks many smaller users. If fees don’t drop—either through Ethereum’s next upgrade or Layer 2 solutions—retail participation may stall.

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Security is still shaky. In May 2025, DeFi platforms lost $275 million to hacks and exploits. One single incident cost $50 million alone. These breaches underscore that smart-contract flaws are not fully fixed. Projects need more audits and bug bounties to protect users.

Regulatory uncertainty in the U.S. also threatens growth. Lawmakers debate stricter crypto rules that could force DeFi platforms to comply with new standards or face penalties. Without clear guidance, developers might delay launches or limit features to avoid legal risks.

Ethereum’s upcoming upgrades carry execution risks. If they fail to reduce fees or get delayed, Layer 2 adoption could slow down. That might undo TVL gains and reduce confidence in dApps.

Final Thoughts

May 2025 marked a turning point for Web3. Rising TVL, booming NFT sales, and growing dApp usage prove that decentralized applications can recover. However, high fees, security lapses, and unclear regulations still pose major challenges. Web3 fans should keep an eye on Ethereum’s fee fixes, security audits, and policy updates. These factors will decide if dApps keep growing or face another setback.