Umair
Blockchain-based applications generated over $2.6 billion in revenue in the first quarter of 2025, according to Grayscale’s latest crypto sector report.
This figure represents a 99% year-over-year increase, signaling rising demand for on-chain services despite volatile market conditions that impacted the industry.
According to the report, smart contract platforms experienced uneven performance throughout the quarter due to shifting market conditions. Grayscale pointed out that trading activity in memecoins on Solana slowed down early in the year, contributing to a decline in some user engagement metrics.
However, the network still managed to attract significant user interest. Grayscale, citing data from Token Terminal, reported that Solana averaged nearly 90 million monthly active users in Q1, down from a peak of 140 million in late Q4 2024.
Even with fewer memecoin trades, Solana generated nearly $390 million in revenue from transaction fees during the quarter. This figure comprised almost half of all earnings across smart contract platforms, underlining the blockchain’s strong utility and growing influence.
