In a groundbreaking analysis, blockchain venture firm 1kx has unveiled its first Onchain Revenue Report, highlighting a significant milestone in the blockchain ecosystem. The report reveals that users paid an unprecedented $20 billion in onchain fees in 2025, driven primarily by the booming decentralized finance (DeFi) sector. The analytical report published in the material substantiates the following: this surge in fees reflects the increasing adoption and utilization of DeFi protocols across various platforms.
DeFi Applications Lead Revenue Surge
The report, which examines over 1,000 protocols, indicates that DeFi applications are at the forefront of this revenue surge, even as transaction costs have plummeted. In the first half of 2025 alone, total fees reached $97 billion, marking the second-highest level since the latter half of 2021. Unlike previous years characterized by high Proof-of-Work costs, the current revenue landscape is dominated by applications such as:
- DeFi platforms
- Decentralized infrastructure projects (DePIN)
- Wallets
- Consumer-facing apps
Skyrocketing Application Usage
Application usage has skyrocketed by 126% year-over-year, signaling a growing mainstream acceptance of blockchain technology. Robert Koschig, Head of Economics at 1kx, emphasized that onchain fee generation serves as a tangible metric of a protocol's real-world utility and economic value, which is crucial for investors seeking transparency and measurable adoption trends.
Infrastructure Advancements and Transaction Costs
The report also highlights that infrastructure advancements have led to a reduction in transaction costs by over 90% compared to 2021, facilitating broader participation in the blockchain space. The top 20 protocols accounted for 70% of total revenue, yet the report warns that agile innovators can swiftly disrupt established players due to the rapid scalability of blockchain technology.
High-Growth Sectors
High-growth sectors identified in the report include:
- Tokenization
- DePIN
- Wallets
- Consumer applications
Future Projections and Regulatory Easing
Regulatory easing further encourages institutional involvement. Looking ahead, 1kx forecasts that onchain fees could increase by 60% year-over-year in 2026, surpassing $32 billion, primarily fueled by application growth. To maintain transparency in the evolving landscape, 1kx plans to release these reports semiannually, providing valuable insights into cost efficiency, user engagement, and investor demand.
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