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1kx's Inaugural Onchain Revenue Report: A $20 Billion Milestone

In a groundbreaking release, 1kx, a renowned early-stage venture capital firm concentrating on transformative blockchain technologies, has announced its first Onchain Revenue Report. This pivotal document quantifies the economic implications of onchain fees across over 1,000 decentralized protocols, revealing a staggering total of $20 billion in fees generated throughout 2025.

This data serves as a benchmark for understanding both the valuation and utility of blockchain technologies. With proprietary analyses sourced from trusted analytics platforms like Dune, TokenTerminal, DeFiLlama, and CoinGecko, 1kx categorized protocols into six primary sectors: Blockchains, Middleware, Decentralized Physical Infrastructure Networks (DePIN), Decentralized Finance (DeFi/Finance), Wallets, and Consumer applications.

Key Findings and Trends

Fee Generation and Market Dynamics
The report indicates that users incurred $9.7 billion in onchain fees during the first half (H1) of 2025, marking the second-highest recorded level since the latter half (H2) of 2021. The contributing factors include billions allocated to user rewards and incentive-driven speculation, primarily focusing on high-cost Proof of Work blockchains. However, the current landscape illustrates a shift, with fees primarily arising from applications predominantly in financial services, alongside significant growth in DePINs, wallets, and consumer-oriented applications — each witnessing more than 200% year-over-year growth.

Cost Efficiency and Impact
The reduction in transaction fees, which have plummeted over 90% since the peaks of 2021, embodies the industry's commitment to mass adoption. This efficiency gain is further complemented by easing regulations that have previously hindered investor participation, resulting in a maturation of digital assets. As transactions cost less, it has paved the path for high-value applications to flourish.

Revenue Distributions and Protocol Value
The onchain fee dynamics reveal that while the top 20 protocols account for 70% of total revenue, newer innovators show a capacity to disrupt established players at an unprecedented pace. The increased growth rate of applications indicates a direct correlation between revenue and valuation, positioning applications as significant drivers in a maturing market.

Looking Ahead: Projections and Future Reports

According to projections within the report, the onchain fee landscape is set for continued growth, with expectations for 2026 already hinting at a target of $32 billion — a 60% increase from 2025. The anticipated growth will largely depend on the scalability of application-based revenue generation.

Robert Koschig, the Head of Economics at 1kx, articulated the importance of the report's findings, stating, "Understanding the valuation aspects of blockchain projects will become critical as the digital asset realm evolves into mainstream capital markets. The revenue report aims to act as an insightful resource for institutions and investors, facilitating informed decisions amidst the rapid growth of decentralized applications."

The Importance of Onchain Fees

As digital tokens increasingly integrate with traditional capital markets as an investable asset class, the generation of onchain fees emerges as a crucial metric for assessing a protocol's real-world utility. This revenue generation not only illustrates user engagement but also signifies the sustainable product-market fit that protocols achieve over time.

For investors, tracking onchain fees provides instant access to transparent performance metrics, mitigating reliance on traditional financial processes often plagued by inefficiencies. As protocols aspire to capture global investment interest, the visibility of onchain fees serves as a vital snapshot of market adoption trends and network viability.

1kx pledges to continue providing insights through semi-annual reports examining user engagement, investor demand, and cost efficiencies across onchain ecosystems.

About 1kx

Founded by tech entrepreneurs Lasse Clausen and Chris Heymann in 2018, 1kx has established itself as a leader in investment within the blockchain space. The firm collaborates with a diverse array of investors, from sovereign wealth funds and pension funds to family offices. Their hands-on approach, coupled with deep technical expertise, has empowered over 150 start-ups to innovate in the blockchain sector, delivering exceptional returns for investors.

For further insights into the report or to explore past research and analyses, please visit 1kx Capital or reach out to @1kxnetwork on X.