According to a recent report by Reown, the on-chain ecosystem is evolving as users move beyond trading to explore other activities. The report suggests that payments and artificial intelligence (AI) will be pivotal in driving broader adoption of on-chain technology.
While there is optimism about the future of cryptocurrencies, challenges such as fees, security issues, and interoperability still persist.
Reown's report, titled "The State of Onchain UX," is based on a survey of 1,038 active crypto users in the US and UK, conducted between February 19 and February 26, 2025.
The report reveals that 37% of users believe that payments, including stablecoins and remittances, will lead to mass adoption. It also highlights the increased use of stablecoins, rising from 20% last year to 37% this year.
The usage of crypto wallets has also seen growth, with the average number of wallets in all regions increasing by 1.27 times in 2024. Additionally, 54% of users now engage in crypto transactions for payments, indicating a rising real-world application.
To make crypto payments more mainstream, they must be as easy to use as traditional fintech services. Users should be able to transact without needing detailed knowledge of blockchain technology, as mentioned by Reown’s Payments Product Manager Mirna Barca.
AI is viewed as another key driver for adoption, with 35% of users considering it a significant catalyst. However, there is skepticism regarding the role of blockchain in AI development. Only 29% believe the two technologies will complement each other.
Regulatory advancements and tokenization are identified as potential factors contributing to mass adoption. Under the Trump administration, crypto regulation gained prominence, with the SEC establishing a crypto task force to create a regulatory framework for digital assets.
Improving security is a top priority for users, with 33% deeming it critical for wider adoption. Confidence in on-chain security has increased, but so have phishing attacks. Better security measures are needed to protect users from such threats.
High fees and lack of interoperability are other hurdles in mainstream adoption. Users want developers to focus on creating practical, secure, and cost-effective experiences. There is a need to bridge the gap between user expectations and current behavior to achieve true mainstream adoption.
Despite these challenges, 67% of survey participants express optimism about the development of cryptocurrencies. Efforts to address security, fees, and interoperability will be crucial for unlocking the full potential of on-chain technology and driving increased mainstream engagement.