The blockchain industry is showing increasing maturity, evidenced by rising onchain revenue, a key metric indicating broader adoption across decentralized finance (DeFi), consumer applications, and emerging sectors. According to a new Onchain Revenue Report from venture capital firm 1kx, onchain revenue, measured by user-paid fees, is projected to reach $19.8 billion in 2025. This follows a record-breaking $9.7 billion generated in the first half of the year.

These fees represent the total amount users spend to transact directly on blockchain and related infrastructure, encompassing trades, swaps, registrations, gaming revenues, and subscriptions. While 2025 is not expected to surpass the all-time high of $24.1 billion recorded in 2021, total onchain fees have grown more than tenfold since 2020, reflecting a compound annual growth rate of approximately 60%.

Analysts view these fees as a crucial indicator, reflecting the repeatable utility that users and firms are willing to pay for. As protocols mature and regulation improves, the ability to generate and distribute consistent fee revenue will distinguish durable networks from early-stage experiments. Rising onchain fees signal the increasing financial health and broader adoption of blockchain technology, particularly in emerging areas such as real-world asset (RWA) tokenization, decentralized physical infrastructure networks (DePINs), and wallet-based consumer applications.

The report highlights a structural shift, with cryptocurrencies evolving from speculative instruments into a legitimate, revenue-generating asset class with tangible network effects. The rapid growth of tokenized RWAs, whose onchain value excluding stablecoins surged to over $28 billion by the third quarter of 2025, further supports this trend.

DeFi platforms have been a major catalyst for this growth, accounting for 63% of all on-chain fees in the first half of 2025. This contribution is largely driven by trading activity on decentralized exchanges (DEXs) and derivatives platforms. This surge indicates that DeFi is evolving into a fee-generating economic system. Protocols that previously relied on token issuance and liquidity incentives are now deriving meaningful income from usage and services, positioning them closer to traditional business models.

Several factors contribute to the rise in onchain revenue. Blockchain technology has become more stable and reliable, helping earnings remain steady even as user fees are lower than in the past. Improved efficiency and cheaper infrastructure are also driving overall revenue growth. The global reach and rising efficiency of blockchains allow applications to scale rapidly and profitably.

DEXs like Raydium and Meteora have significantly benefited from Solana's surge, while Uniswap's market share has decreased from 44% to 16%. In derivatives, Jupiter increased its fee share from 5% to 45%, and Hyperliquid, launched less than a year ago, now accounts for 35% of category fees. Aave continues to dominate lending as the largest DeFi protocol, with a total value locked (TVL) of $39 billion, while Morpho, a lending aggregator with a TVL of $8.25 billion, has increased its share to 10%.

Beyond DeFi, newer verticals, including crypto wallets, consumer-facing apps, and DePINs, are exhibiting explosive growth. Wallet revenue has increased by over 260% year-over-year, while apps and DEPIN have surged by over 200% and 400%, respectively. This trend indicates that the crypto ecosystem, particularly DeFi platforms, is evolving with real-world use cases and active demand, leading users to pay for services and helping protocols generate consistent revenue streams.

Looking ahead, total onchain revenue is expected to surpass $27 billion in 2026, driven by new technologies and clearer regulations. Applications are scaling faster and larger than ever, with increasing value distribution, while regulatory clarity supports broader investor participation.

However, challenges remain, including scalability issues that can lead to high network congestion and prohibitive fees. Complex or unpredictable fee structures can also confuse and deter users. The competitive landscape requires constant pressure to offer attractive services. Despite these challenges, the growth in onchain revenue represents a significant step towards the maturation of the crypto industry.