Crypto venture firm 1kx said on-chain fees declined 33% year over year in the second quarter. The biggest drop came from decentralized exchanges, where fees fell by $625 million, or 57%, led by declines tied to Meteora, Raydium and PancakeSwap. Blockchain and MEV fees were down $362 million, while launchpad fees fell 57%, with Pump.fun accounting for nearly half of that contraction. Not every segment moved lower. Perpetuals and prediction markets posted 22% growth, with edgeX and Hyperliquid leading the increase and Polymarket contributing nearly $100 million in a single quarter. Lending and asset management also kept growing, with Morpho, USDai and Maple Finance each adding between $9 million and $19 million. 1kx also noted that Canton Network added $179 million in Layer 1 fees, though most of that was incentive-driven. Despite the broader pullback in industry fees, distributions to token holders remained stable, and Binance burns continued to make up a sizable share, while protocols including Hyperliquid have made buybacks and burns a regular part of policy.
According to ChainCatcher, crypto venture firm 1kx (@1kxnetwork) said on-chain fees fell 33% year over year in the second quarter.
By segment, DEX fees dropped by $625 million, or 57%. 1kx said the decline was mainly driven by Meteora, Raydium and PancakeSwap, which together generated $1.5 billion in fees in the first half of last year.
Blockchain and MEV fees fell by $362 million, down 40%. Launchpad fees declined 57%, with Pump.fun contributing nearly half of the overall drop in that category.
Some sectors still grew
Even as total industry fees moved lower, several areas posted year-over-year growth. Fees from perpetuals and prediction markets rose 22%, led by edgeX and Hyperliquid. Polymarket contributed nearly $100 million in a single quarter.
Lending and asset management kept expanding as well. Morpho, USDai and Maple Finance each added between $9 million and $19 million.
Canton Network added $179 million in L1 fees, though 1kx said most of that was driven by incentives.
Token holder distributions stayed stable
1kx said that despite the broader decline in industry fees, distributions to token holders remained stable. Binance burns still accounted for a sizable share, while protocols including Hyperliquid have made buybacks and burns a standing part of policy.
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