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Blockchain’s Cash Flow Moment: Onchain Revenues Soar Toward $20B
- Blockchain networks generate record fees, approaching US$19.8B in 2025, with DeFi accounting for 63% of revenue.
- Ethereum faces competition from Layer-2 and alternative chains; profitable protocols expand eightfold.
- Real-world asset tokenisation surges to US$35B, supported by institutions; 2026 revenues projected at US$32B.
Blockchain networks are evolving into a revenue-generating ecosystem, with fee-based activity on track to approach US$19.8 billion (AU$30.2 billion) in 2025, according to venture capital firm 1kx. The company’s Onchain Revenue Report attributes this surge to widespread user participation across DeFi, wallets, consumer apps and real-world asset tokenisation.
The data shows blockchain revenues have multiplied tenfold since 2020, growing at roughly 60% per year. The first half of 2025 alone saw a record US$9.7 billion (AU$14.8 billion) in fees, covering payments for transactions, asset swaps, gaming, and digital subscriptions.
In its analysis of over 1,200 protocols, 1kx found that decentralised finance continues to dominate with 63% of total fees, while emerging categories are rapidly gaining traction. Wallets generated 260% more revenue than the previous year, consumer apps rose 200%, and DePIN networks expanded by 400%.
Ethereum, while still a leading blockchain, has lost some market share as layer-2 and alternative networks reduced transaction costs – average Ethereum fees have fallen 86% since 2021. Even so, the number of profitable protocols has increased eightfold.
1kx’s report emphasises that fees represent “repeatable utility that users and firms are willing to pay for,” signalling genuine use beyond speculation. The researchers argue that sustainable fee generation will distinguish long-term viable protocols from experimental projects.
Related: Tom Lee’s BitMine Adds $417M in Ethereum, Aiming to Control 5% of ETH Supply
Revenue Versus Valuation
The report also identified a disconnect between revenue and valuations. The top 20 protocols generate 70% of all onchain fees, yet their market capitalisations have not grown proportionally, suggesting a shift toward valuing blockchain projects based on business fundamentals rather than hype.
Real-world asset (RWA) tokenisation has become another major driver, with the total onchain value of tokenised RWAs – excluding stablecoins – surpassing US$35 billion (AU$53.4 billion) by late 2025. This momentum has been supported by institutions such as JPMorgan, BlackRock and BNY Mellon.
Looking ahead, 1kx projects that blockchain revenues will rise to US$32 billion (AU$48.8 billion) in 2026, as the industry transitions into a more stable and utility-focused phase under improving regulation.
Related: Bitwise Solana ETF Extends Record-Breaking Debut with US$72M in Second-Day Trading
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Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
