The on-chain economy shows growing maturity. It is projected to generate $19.8 billion in fees during 2025. This represents a 35% year-over-year increase. This was revealed in a recent report by the venture fund 1kx.capital, highlighting sustainable on-chain fee growth.
According to the analysis, users spent $9.7 billion in the first half of 2025. This figure marked the highest total recorded for a first half. It even surpasses the $9.5 billion seen in the same period of 2021. Furthermore, 1kx.capital noted that 2025 fees are 10 times higher than those in 2020, with a compound annual growth rate (CAGR) of about 60%.
This growth is fundamental. It demonstrates a transition from speculative incentives to a usage-based economy. Previously, high fees were driven by costly blockchains. Today, applications now lead revenue generation, expanding rapidly across various sectors. On the other hand, the 86% drop in the average transaction fee, 90% driven by Ethereum, has accelerated ecosystem participation.
Are Decentralized Finance Leading Mass Adoption?
Financial and DeFi applications continue to dominate the space. They accounted for 63% of all fees in the first half of 2025, totaling $6.1 billion. This represented a notable 113% year-over-year increase. Thus, specific Solana protocols, like Raydium and Meteora, have challenged Uniswap’s dominance in the sector. In the lending space, Aave remains the leader, although Morpho has quickly captured 10% of the fees.
The report also distinguishes off-chain revenues. These reached $23.5 billion, led by centralized exchanges (CEXs). However, on-chain fee growth remains the key barometer of adoption. Looking ahead, 1kx.capital projects that the on-chain economy could generate over $32 billion in fees by 2026.
