Bitget App
Trade smarter
DeFi Fees Hit $20 Billion in 2025 as On-chain Applications Drive Explosive Growth

DeFi Fees Hit $20 Billion in 2025 as On-chain Applications Drive Explosive Growth

DeFi PlanetDeFi Planet2025/10/31 22:45
By:DeFi Planet

Blockchain venture firm 1kx has released its inaugural Onchain Revenue Report , revealing that users paid a record $20 billion in on-chain fees in 2025. The analysis, covering over 1,000 protocols, shows decentralized finance (DeFi) leading the surge, with applications driving revenue growth while transaction costs have dropped sharply.

DeFi Fees Hit $20 Billion in 2025 as On-chain Applications Drive Explosive Growth image 0 DeFi Fees Hit $20 Billion. Source: 1kx

DeFi dominates on-chain revenue

According to the report, fees totaled $9.7 billion in the first half of 2025 alone, marking the second-highest level since H2 2021. Unlike previous periods, when high Proof-of-Work costs inflated fees, today’s revenue comes primarily from applications such as DeFi platforms, decentralized infrastructure projects (DePIN), wallets, and consumer-facing apps. Application usage jumped 126% year-over-year, reflecting growing mainstream adoption of blockchain technology.

Robert Koschig, Head of Economics at 1kx, highlighted that “on-chain fee generation provides a clear, quantifiable metric of a protocol’s real-world utility and economic value,” stressing its importance for investors seeking transparency and measurable adoption trends.

Efficiency and innovation fuel growth

The report emphasizes that infrastructure improvements have reduced transaction costs by more than 90% compared to 2021, enabling higher adoption and broader participation. The top 20 protocols accounted for 70% of total revenue, yet the report notes that nimble innovators can quickly disrupt incumbents due to blockchain’s rapid scalability .

High-growth areas identified include tokenization, DePIN, wallets, and consumer applications, while regulatory easing has encouraged institutional participation. Looking ahead, 1kx projects that on-chain fees could grow 60% year-over-year in 2026, exceeding $32 billion, driven largely by applications.

1kx plans to release these reports semi-annually to provide insight into cost efficiency, user engagement, and investor demand, offering a transparent view of on-chain economic activity that is increasingly shaping blockchain valuations.

In parallel, Bybit’s latest DeFi report highlights that real-world assets (RWA) and decentralized exchanges (DEXs) are now key drivers of DeFi growth, signaling a shift from the speculative boom of 2020 toward institutionally-driven, practical use cases.

 

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Bitcoin News Update: Bitcoin Eyes $200K Amid Market Fluctuations—BlockchainFX Presale Seeks to Leverage Opportunity

- Saylor and Kiyosaki advocate for Bitcoin's $200K target by 2025, citing accumulation trends and geopolitical stability. - BlockchainFX's $0.029 presale (targeting $0.05) attracts $10.4M+ in 15,700+ investors with 90% APY staking and Visa card utility. - Macroeconomic tailwinds (98.3% Fed cut probability) and institutional Bitcoin adoption (MicroStrategy's 3.5x growth) reinforce bullish sentiment. - Volatility risks persist: Bitcoin ETF outflows ($488M) contrast with strategic corporate accumulation and B

Bitget-RWA2025/11/01 11:20

Democratic Anti-Crypto Legislation Ignites Partisan Clash Over Connections to Trump

- U.S. Democrats, led by Rep. Ro Khanna, introduced a bill to ban elected officials from crypto/NFTs and mandate asset disclosure, targeting Trump’s pro-crypto ventures. - The bill accuses Trump’s family of leveraging their influence to promote unregulated crypto projects, citing World Liberty Financial’s ties to Binance’s Zhao. - Partisan clashes intensify as Trump pardoned Zhao, boosting BNB/BNB, while New Hampshire’s crypto mining deregulation stalled over environmental concerns. - Senator Warren critic

Bitget-RWA2025/11/01 11:20
Democratic Anti-Crypto Legislation Ignites Partisan Clash Over Connections to Trump

Bitcoin News Update: Privacy-Focused Zcash Soars by 400% While Bitcoin Faces Broader Economic Challenges

- Zcash (ZEC) surged 400% in 30 days, hitting a seven-year high amid Bitcoin's $108,000 struggle due to macroeconomic pressures and geopolitical tensions. - Institutional interest and 4.5M ZEC locked in shielded pools drove ZEC's rally, reflecting growing demand for privacy-centric assets like the Grayscale Zcash Fund's $85M inflows. - Bitcoin faces headwinds from Fed rate cuts, U.S.-China trade dynamics, and Trump-era nuclear rhetoric, with technical indicators signaling oversold conditions below $110,000

Bitget-RWA2025/11/01 10:58
Bitcoin News Update: Privacy-Focused Zcash Soars by 400% While Bitcoin Faces Broader Economic Challenges

Thodex CEO's Death in Prison Triggers Immediate Demands for Cryptocurrency Oversight Following $2.6 Billion Loss

- Faruk Fatih Özer, former CEO of collapsed Turkish crypto exchange Thodex, was found dead in prison while serving an 11,196-year sentence for orchestrating a $2.6B fraud. - His death reignited scrutiny over Thodex's 2021 collapse, which left thousands of investors with losses, prompting urgent calls for stricter crypto regulations in Turkey and globally. - Prosecutors alleged Özer siphoned $253M in crypto assets through fraudulent transactions, though initial loss estimates ($24M) starkly contrasted with

Bitget-RWA2025/11/01 10:58