Blockchains’ onchain revenue share drops to 25% as apps dominate

According to the 1kx Onchain Revenue Report, blockchains’ share of total onchain fee generation has collapsed from roughly 56% in 2021 to just 22% in the first half of 2025. Projections suggest blockchain revenues will dip below 20% by end of 2025, meaning apps now capture approximately three-quarters of all onchain revenue.

How the tables turned

DeFi applications accounted for 63% of all onchain fees collected in the first half of 2025, driven primarily by trading activity and derivatives volume. Transaction costs fell roughly 90% from their 2021 peak, a direct result of scaling improvements, layer-2 adoption, and more efficient block space markets.

Tron, Ethereum, and Solana still dominate what remains of the blockchain-side fee market, collectively accounting for roughly 80% of blockchain-layer fees in H1 2025.

The numbers behind the shift

Total onchain fee revenue for 2025 is projected at $19.8 billion, which represents a 35% year-over-year increase. Projections for 2026 push total onchain fees above $32 billion, a 63% increase from 2025 levels. The 1kx report attributes that entire growth figure to the application layer, with zero growth expected from blockchains themselves.

Value distributed to token holders in the first half of 2025 hit $9.7 billion, primarily through app-generated buybacks and token burns.