On-Chain Revenue Report Highlights Growth in Crypto Market

According to PANews, 1kx has released its most comprehensive report on the crypto market's on-chain revenue to date, titled '1kx On-Chain Revenue Report (First Half of 2025).' The report compiles verified on-chain fee data from over 1,200 protocols, illustrating user payment paths, value flows, and key growth drivers.The significance of on-chain fees lies in their role as a direct indicator of genuine payment demand. The report contrasts the open, global, and investment-worthy nature of the on-chain ecosystem with the restricted and mature off-chain ecosystem. Data comparisons reveal a 126% year-over-year increase in on-chain application fees, compared to a mere 15% growth off-chain.In 2020, on-chain activities were experimental, but by 2025, they have evolved into a $20 billion measurable economy. Users pay for hundreds of application scenarios, including trading, buying and selling, data storage, and cross-application collaboration. This year, 1,124 protocols have achieved on-chain profitability.DeFi remains a core pillar, contributing 63% of total fees, though the industry landscape is rapidly changing. Wallet services have surged by 260%, transforming interfaces into profit centers. Consumer applications have grown by 200%, directly monetizing user traffic. DePIN has skyrocketed by 400%, bringing computing power and connectivity services on-chain.Despite total fees not surpassing the 2021 peak, the ecosystem's health is stronger than ever. At that time, ETH on-chain fees accounted for over 40%, but transaction costs have since decreased by 86%. The number of profitable protocols has increased eightfold, and token holder dividends have reached record highs.Asset prices determine on-chain fees in USD, aligning with expectations but requiring attention to price volatility and seasonal cycles. Since 2021, application fees and valuations have shown a strong causal relationship, with fees driving up valuations. Specific on-chain factors significantly impact certain sectors.The top 20 protocols account for 70% of total fees, but rankings frequently change due to the crypto industry's rapid disruption. The top five protocols are Meteora, Jito, Jupiter, Raydium, and Solana. Despite application projects dominating fee generation, their market share remains unchanged. This is because the valuation logic for application projects mirrors traditional enterprises, with DeFi price-to-earnings ratios around 17 times, while public chain valuations reach 3,900 times, reflecting additional narrative value.Looking ahead, baseline forecasts indicate that on-chain fees will exceed $32 billion by 2026, a 63% increase driven mainly by the application layer. RWA, DePIN, wallets, and consumer applications are entering a period of accelerated growth. As scaling technologies advance, L1 fees are expected to stabilize. With favorable regulatory developments, this marks the beginning of the crypto industry's maturity, where application scale, fee income, and value distribution will progress in tandem.