On-Chain Fees Reach Record Highs as Market Awaits Stress Test

A report by 1kx has shed light on the growing trend of on-chain fees in the cryptocurrency market. The firm found that users paid $9.7 billion in on-chain fees in the first half of 2025, a 41% increase from the same period last year.

The majority of these fees are tied to Bitcoin's price, with sectors such as liquid staking and DePIN showing high correlation. However, other sectors such as DePIN and issuance-linked businesses have lower correlation and may be more resilient during a downturn.

1kx projects that on-chain fees will continue to grow in 2026, driven by accelerating application growth. However, the firm warns that a Bitcoin drawdown could stress-test protocol fees and expose which on-chain costs are real.