Among the many indicators used to measure activity in the cryptocurrency sector are on-chain revenues generated by blockchains or protocols. This figure is set to exceed $20 billion this year, amid a maturing market largely focused on decentralized applications.
On-chain revenue: over $20 billion this year
Are we witnessing a historic shift in the cryptocurrency ecosystem toward an economic model that is both more mature and less volatile? The question seems to be on the table, given the massive influx of traditional finance into this constantly evolving digital landscape.
This observation forms the basis of the latest report from the crypto investment firm 1kx, which specializes in ecosystem growth, using on-chain revenue—fees paid by users on blockchain protocols—generated by various crypto players as its primary metric.
First key point: this figure was expected to exceed $20 billion this year for the second time in the sector’s history, with a record high reached in the first half of the year at $9.7 billion (+41% year-over-year), making it the highest ever recorded.
On-chain revenue generated by year
Since 2020, on-chain revenue has increased tenfold, with a compound annual growth rate of 60%. At the same time, a notable shift has taken place, with blockchains that were largely dominant in 2021 (56% of the total) having since given way to DeFi financial applications, which now account for over 65% of the total in 2025.
On-chain fees, although they still represent only a minority of the sector’s revenue, provide clear signals of adoption and long-term value creation: since the start of the year, nearly 400 protocols have reported over $1 million in annual recurring revenue (ARR), and 20 of them have transferred over $10 million in value to their token holders
1kx
DeFi dominates by a wide margin
The 1kx report highlights an ongoing shift in the crypto ecosystem, moving from a phase of “speculative frenzy”—characterized by very high but unsustainable fees—to a phase of “maturity” supported by more efficient infrastructure and decentralized applications (dApps), which have become the primary driver of revenue.
During the first half of this year, on-chain revenue was distributed across the following sectors:
- 63% in DeFi: DEX trading fees and Perps;
- 22% in Layer 1 blockchains: transaction fees and MEV capture;
- 8% for crypto wallets: swap fees;
- 6% for consumers: 80% launchpads (Pump.fun: 60%), 8% casinos, and 4% creators and social;
- 1% for DePIN: the highest growth at 400% annually;
- 1% for middleware: bridges, development tools.
On-chain revenue generated by sector
According to the 1kx report, the current boom in stablecoins has actively contributed to the increase in revenue in the first half of this year. This growth is also linked to significant developments in sectors such as perpetual DEXs, tokenization, and the accelerated development of AI-powered decentralized finance (DeFAI).
With this in mind, on-chain revenue is expected to continue growing, reaching $32 billion by 2026. This momentum is now driven by real-world use cases and activity largely focused on decentralized DeFi applications, with institutional participation expected to increase value distribution to token holders.
