H1 2025 On-Chain Fees Hit $20B; 1,124 Protocols Turn Profitable
H1 2025 on-chain fees reached $20B across 1,124 profitable protocols. DeFi drove 63% of revenue, while wallets (+260% YoY), consumer apps (+200%), and DePIN networks (+400%) saw rapid growth. Transaction costs fell 86% since 2021, and profitable protocols grew eightfold. ETH’s fee share declined despite lower costs and an 8× protocol boom. The top five projects—Meteora, Jito, Jupiter, Raydium and Solana—capture 70% of fees. Yet DeFi tokens trade at a 17× P/E versus 3,900× for public chains, reflecting a valuation disconnect. Forecasts project on-chain fees rising to $32B by 2026, driven by tokenized real-world assets, DePIN expansion, wallet monetization and consumer crypto adoption. Improved infrastructure and clearer regulation signal a mature on-chain economy. Crypto traders should track revenue-driven tokens and high-growth sectors for strategic allocation and risk management.
Bullish
This report highlights robust on-chain fee growth, broad protocol profitability and emerging high-growth segments. In the short term, increasing fees and lower transaction costs can boost network activity and token demand, potentially driving price gains for leading chains like ETH and SOL. Long term, forecasts for $32B fees by 2026, fueled by RWA, DePIN and consumer adoption, suggest sustained revenue expansion. The valuation gap favoring public chains may also shift capital into undervalued DeFi tokens. Overall, positive fundamentals and clear growth drivers point to a bullish market outlook.