Onchain revenue across blockchain networks is projected to approach $20 billion in 2025, marking a significant milestone in the sector’s evolution from speculative hype to genuine economic utility. According to a comprehensive report by venture capital firm 1kx, user-paid fees — the core metric for gauging real blockchain adoption — are set to hit approximately $19.8 billion, reflecting the growing maturity of decentralized networks.
This estimate follows a record-setting first half of the year, during which onchain fees reached $9.7 billion. These fees encompass a wide range of user activities, including token swaps, decentralized exchange (DEX) trading, gaming transactions, name registrations, and subscription services, all of which are executed directly on blockchain infrastructure.
Although the 2025 forecast falls short of the 2021 peak of $24.1 billion, the broader trajectory reveals a powerful trend: onchain fees have expanded over tenfold since 2020, with an annual compound growth rate near 60%. This surge indicates that users are increasingly willing to pay for actual blockchain services, suggesting a transition from abstract speculation to real-world application.
The authors of the report — Lasse Clausen, Christopher Heymann, Robert Koschig, Clare He, and Johannes Säuberlich — emphasize that fees paid by users are the most reliable indicator of a blockchain network’s utility and sustainability. “Repeatable, paid usage is the clearest sign of long-term viability,” the report notes, adding that as protocols evolve and regulatory clarity improves, networks with consistent fee revenue will be best positioned to endure.
This trend signals a broader adoption of blockchain technology across various sectors. Notably, the growing interest in tokenized real-world assets (RWAs), decentralized physical infrastructure networks (DePINs), and consumer-facing blockchain applications has played a central role in driving fee growth.
Tokenized assets, in particular, have seen explosive growth. Excluding stablecoins, the onchain value of tokenized RWAs exceeded $28 billion by Q3 2025 and has since surpassed $35 billion, according to external data. The total value of tokenized assets has more than doubled year-over-year, while associated fees have grown at an even faster rate — a sign of increasing market engagement and utility.
Large financial institutions are also entering the space, bringing both capital and credibility. Giants like JPMorgan, BlackRock, and BNY Mellon are embracing blockchain for asset tokenization. JPMorgan, for example, has tokenized one of its private equity funds on its proprietary Kinexys blockchain. Meanwhile, BNY Mellon has partnered with Securitize to move collateralized loan obligations (CLOs) onto blockchain rails. These moves underscore a major shift in how traditional finance views the utility of decentralized systems.
The proliferation of wallet-based consumer applications is another driver of onchain activity. As more users interact with digital wallets for payments, gaming, and social applications, they contribute to the volume of fee-generating transactions. These apps, once niche, are increasingly integrated into everyday digital lives, further embedding blockchain into mainstream usage.
Decentralized physical infrastructure networks (DePINs) — which allow users to contribute hardware resources such as bandwidth or storage in exchange for tokens — are also gaining traction. These networks create new economic incentives and revenue streams, reinforcing user participation and fee generation.
One of the most compelling aspects of this shift is the structural transformation of cryptocurrencies from speculative instruments into productive, revenue-generating networks. This evolution mirrors broader internet trends, where early hype gave way to sustainable business models as usage matured.
While the crypto market has often been dominated by price volatility and meme-driven speculation, the rise in onchain revenue suggests a deeper, more sustainable foundation is taking root. As fee-based models expand, they provide critical infrastructure for Web3 applications — enabling decentralized governance, incentivizing ecosystem contributors, and funding ongoing development.
Still, the crypto industry faces ongoing challenges. Regulatory uncertainty, scalability bottlenecks, and user experience barriers continue to hinder broader adoption. However, the steady rise in onchain revenue is a positive signal that these issues are being addressed — not just through technical innovation, but through market validation.
Investors and developers alike are beginning to prioritize economic sustainability. Instead of chasing short-term gains, many projects are now focused on building ecosystems that generate recurring revenue and deliver long-term value to stakeholders.
Looking forward, the next phase of blockchain growth may hinge on how effectively networks can convert user engagement into lasting economic activity. Protocols that succeed in doing so will not only survive the next market cycle but may emerge as foundational infrastructure for the digital economy.
In summary, the anticipated $19.8 billion in blockchain user fees for 2025 is more than a financial benchmark. It represents a pivotal test of the crypto industry’s maturity — a sign that real-world demand, not just speculation, is driving the next wave of decentralized innovation. As tokenized assets and onchain applications continue to gain ground, the blockchain ecosystem is poised to step into a new era of utility, resilience, and relevance.