Crypto asset firm Grayscale has revealed that blockchain apps generated $2.6 billion in revenue during Q1 2025, beating smart contract networks whose fees declined due to reduced trading on Solana.
According to the latest Grayscale report, blockchain apps thrived despite an 18% decline in the crypto sector price index during the research period. The report, which relied on data from Artemis, revealed that blockchain apps attracted over $2.59 billion in fees during Q1, representing a 100% year-to-year increase and 11.7% higher than the previous quarter.
Reduced Smart Contract Activity
While the Grayscale report showed increased revenue for blockchain apps, other blockchain-based networks weren’t as lucky as the DApps. For example, smart contract networks garnered at least $832 million in revenue during Q1 2025, representing a 46.5% decline from the $1.55 billion earned during the same period in 2024. In addition to the reduced revenues from smart contract platforms, the Grayscale report further indicated that the number of monthly users declined from 199 million in 2024 Q4 to 158 million now.
The report attributed the decline to several metrics, especially a plunge in meme coin activity on the Solana network. Unlike the blockchain apps that continued to show an upward trend, the Grayscale report showed that the number of Solana users fell from 140 million in Q4 2024 to 90 million in Q1 2025. The report read in part:
“Although meme coins do not claim to offer real-world utility — and can be associated with especially high risks for investors — interest in meme coin trading may have introduced new users to the Solana ecosystem.”
Benefits of DApps
The growing popularity of blockchain apps could be attributed to their many advantages compared to traditional applications. Also known as decentralized applications (DApps), they offer users greater security than regular applications. While the data on conventional applications is stored on a centralized server where it can be hacked or compromised, blockchain apps have their data distributed across different nodes, making it harder for cyber criminals to access. Moreover, blockchain apps are relatively faster and more efficient, making them more popular.
Conclusion
The increasing popularity of blockchain technology has led many businesses and individuals to explore more potential applications. As a result, more users are drawn to blockchain apps due to their lack of need for third parties, leading to reduced transaction fees and faster transactions.
Since blockchains are highly secure because of their use of cryptography and decentralized nature, they have become ideal for applications in healthcare or finance where speed and security are required. Most importantly, blockchain apps are tamper-proof, meaning once data has been entered, it can never be changed or deleted, making them especially important where data integrity is critical.
Frequently Asked Questions (FAQs)
Why are blockchain apps used?
Decentralized applications (DApps) run on a blockchain network and offer features like secure transactions, data sharing, and smart contracts without a central authority.
What is the difference between DApps and apps?
Unlike normal apps, which run on centralized servers, Decentralized Applications (DApps) operate on a decentralized blockchain. They provide benefits such as improved security, transparency, and resistance to censorship.
What are some key characteristics of a blockchain application?
DApps are characterized by their decentralized feature. Their backend code operates on a decentralized peer-to-peer network rather than a centralized server. This unique attribute offers benefits like increased security, resilience, and user control.
Appendix: Glossary to Key Terms
Blockchain: The technology that records transactions in a secure, transparent, and decentralized manner, forming the backbone for cryptocurrencies.
DApps: Software programs that run on a decentralized, blockchain-based network rather than a centralized server, offering enhanced security, transparency, and autonomy.
Volatility: The degree of price fluctuation of an asset over a period, meaning how much and how quickly the price can change, is often characterized by large and rapid swings.
