On-Chain Economy Set to Generate $19.8 Billion in Fees in 2025, Report Finds

A recent report by 1kx.capital indicates that the on-chain economy is projected to generate $19.8 billion in fees in 2025, marking a significant shift toward sustainable, usage-driven economics with a 60% compound annual growth rate (CAGR) since 2020. Users spent $9.7 billion in the first half of 2025 alone, surpassing the total for the same period in 2021. This growth is now driven primarily by applications, including DePINs, Wallets, and consumer apps, rather than just speculative incentives or costly Proof-of-Work chains. Despite the projected 2025 fee total being 18% below 2021 levels, the report forecasts $32+ billion in fees for 2026. DeFi and financial applications remain dominant, accounting for 63% of H1 2025 fees ($6.1 billion), with DEXs, perpetuals, and lending protocols leading. The report also noted that average transaction fees dropped by 86%, largely due to Ethereum, which accelerated ecosystem participation, leading to a 5.3-fold surge in monthly transacting wallets to 273 million.

Beyond on-chain fees, the broader digital asset economy generates substantial revenue from off-chain sources ($23.5 billion, mostly from CEXs) and network-level income like block rewards and stablecoin yields ($23.1 billion).

(Source：BeInCrypto)